FDIC Your Insured Deposit Single Ownership Accounts

A single (or individual) ownership account is an account owned by one person. Such accounts include those in the owner's name; those established for the benefit of the owner by agents, nominees, guardians, custodians, or conservators; and those established by a business that is a sole proprietorship.

13. How is a single ownership account insured?

All single ownership accounts established by, or for the benefit of, the same person are added together. The total is insured up to a maximum of $100,000, including principal and interest.

14. What if I deposit funds in my own name, but then give another person the right to withdraw funds from my account?

If an individual owns and deposits funds in his or her own name, but then gives another person the right to withdraw funds from the account, the account will be insured as a joint ownership account. There are two exceptions to this rule. First, withdrawals by a person other than the owner are permitted pursuant to a Power of Attorney. Second, withdrawals by a person other than the owner are permitted if the deposit account records clearly indicate, to the FDIC's satisfaction, that the funds are owned by one person and that the other signatory is authorized to withdraw funds only on the owner's behalf.

Example of Insurance for Single Ownership Accounts

The following example shows the maximum amount of deposit insurance coverage available for the most common types of single ownership accounts.

15. What is the Uniform Gifts to Minors Act?

The Uniform Gifts to Minors Act is a state law that allows an adult to make an irrevocable gift to a minor. Funds given to a minor by this method are held in the name of a custodian for the minor's benefit. Funds deposited for the minor's benefit under the Act are added to any other single ownership accounts of the minor, and the total is insured up to a maximum of $100,000.