Maximizing Your FDIC Coverage
Your deposits at Pacific Crest Savings Bank are insured up to at least $250,000 per depositor. The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed on July 21, 2010, made this insurance limit permanent.
For many people the limit is enough coverage, but for those needing greater insurance, multiple account ownerships can dramatically increase coverage. It is important to remember that simply opening a number of accounts does not increase coverage -- the type of ownership must be different in order to increase the level of FDIC insurance.
Ownership means how funds are held and how the account is titled. There are several types of ownership including individual, joint, revocable trust and self-directed retirement plans like IRAs. For example, with an individual account the funds are owned by one individual and the account is in that person’s name only.
With a joint account, the account is in the name of two or more people and all have the right to withdraw funds. Generally, each person with a joint account is accorded an equal share of that account and each person is insured to $250,000.
Revocable trust accounts enable the owner of the funds to designate a beneficiary to receive the funds if the owner dies. However, while alive the owner retains complete control over the money and is insured up to $250,000 for each qualifying beneficiary.
We recommend using a helpful free tool provided by FDIC – the Electronic Deposit Insurance Estimator (EDIE). https://www.fdic.gov/edie/
Please contact us for assistance to determine if you have adequate deposit insurance for your accounts.
FDIC EDIE Calculator
FDIC has a free Electronic Deposit Insurance Estimator (EDIE). The EDIE calculator lets consumers know how the insurance rules and limits apply to a depositor’s specific group of deposit accounts—what’s insured and what portion (if any) exceeds coverage limits at that bank. EDIE also allows the user to print the report for their records.
EDIE can be used to calculate the insurance coverage of all types of deposit accounts offered by an FDIC-insured bank, including: Checking Accounts, Savings Accounts, Money Market Deposit Accounts and Certificates of Deposit. EDIE should NOT be used for investments, including Mutual Funds, Stocks, Bonds, Annuities and any investment that is not a deposit in an FDIC-insured bank.