FDIC Your Insured Deposit Merged Institutions

Funds deposited by a corporation, partnership, or unincorporated association are insured up to a maximum of $100,000. Funds deposited by a corporation, partnership, or unincorporated association are insured separately from the personal accounts of the stockholders, partners, or members. To qualify for this coverage, the entity must be engaged in an "independent activity," meaning that the entity is operated primarily for some purpose other than to increase deposit insurance.

Accounts owned by the same entity, but designated for different purposes, are not separately insured. Instead, such accounts are added together and insured up to $100,000 in the aggregate. So, if a corporation has divisions or units that are not separately incorporated, the deposit accounts of those divisions or units will be added to any other deposit accounts of the corporation for purposes of determining deposit insurance coverage.

Funds owned by a business that is a sole proprietorship are treated as the individually owned funds of the person who is the sole proprietor. So, funds deposited in the sole proprietorship’s name are added to any other single ownership accounts of the sole proprietor and the total is insured to a maximum of $100,000.

Whenever two or more insured depository institutions merge, their deposits continue to be separately insured for six months from the date of the merger. Certificates of deposit assumed by another institution continue to be separately insured until the earliest maturity date after the end of the six-month period. Such certificates of deposit that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) will continue to be separately insured until the first maturity date after the six-month period. Such certificates of deposit that mature during the six-month period and are renewed on any other basis, or that are not renewed and become demand deposits, will be separately insured only until the end of the six-month period.

EDIE is an interactive Internet application that allows consumers or bankers to enter information about an account or group of accounts at an FDIC-insured institution, and receive back a report that states whether the funds are fully insured. If any funds are uninsured, EDIE will identify them and explain why the funds are not covered. A person does not need to know the deposit insurance rules in order to use EDIE. The program asks simple questions about the names (ownership) and balances of accounts, then furnishes a report. Assisting users along the way is a red-haired, green-eyed helper, "EDIE." EDIE provides definitions of terms, examples, and other important information to make the system easy to use. To protect consumers’ privacy, no identifying information such as account numbers, Social Security numbers or bank names is asked.

Depositors are advised that no person may, by any representations or interpretations, affect the extent of insurance coverage provided by the Federal Deposit Insurance Act and the rules and regulations for insurance of deposit accounts.

Federal Deposit Insurance Corporation
Division of Compliance and Consumer Affairs
550 17th Street, N.W.
Washington, DC 20429-9990
1-800-934-3342 or 1-202-942-3100
1-800-925-4618 or 1-202-942-3147 (TTD)
E-mail Address: Consumer@FDIC.gov

The official bank sign looks like this: