As a depositor at Zions Bank, we want you to know how your deposits are insured and how you can increase your amount of insurance protection.
Accounts Covered by FDIC Insurance for up to $250,000
By law, the maximum amount of Federal Deposit Insurance Corporation (FDIC) coverage on accounts is $250,000 for each depositor at each insured depository institution and for each account ownership category.
Special Rule for Sweep Investments
If you have a checking account that “sweeps” funds into another account, funds swept into FDIC-insured accounts are subject to the $250,000 FDIC insurance limit. Funds swept into accounts that aren’t FDIC-insured don’t include FDIC insurance coverage.
How to Increase the Amount of FDIC Insurance for Your Zions Bank® Accounts Beyond $250,000
You can increase FDIC insurance coverage on your Zions® accounts beyond $250,000 by using a combination of accounts. Talk with your banking representative for details on how you might be able to increase your FDIC insurance coverage.
The following questions and answers provide information to make informed decisions regarding your deposits. For more information, use the FDIC’s Electronic Deposit Insurance Estimator (EDIE).
What’s the basic amount of FDIC-insured coverage for each depositor?
The basic insured amount for each depositor is $250,000. FDIC-insurance coverage is extended to deposits at Zions Bank, including:
- Savings accounts
- NOW accounts
- Cashier’s checks
- Official checks
- Pension accounts
- Letters of credit
- Certificates of deposit (CDs)
- Money orders
- IRA accounts
- Keogh accounts
How can I increase the amount of FDIC insurance on my Zions Bank account(s) beyond $250,000?
If your Zions Bank account balances exceed $250,000, there are several quick and easy ways to increase or maximize your insurance coverage.
Deposits maintained in different categories of legal ownership are insured separately. So you can have more than $250,000 insurance coverage at Zions Bank (or any single institution) by using a combination of different categories of ownership. The most common categories of ownership are:
- Single (or individual) ownership
- Joint ownership
- Testamentary accounts (an account payable-on-death to a named beneficiary)
In addition to FDIC insurance on deposits, each depositor is separately insured for up to $250,000 for funds held for retirement purposes (i.e. individual retirement accounts or Keoghs). So, on a joint account, both depositors are insured for $250,000, for total insurance coverage of $500,000 on the account. And, if you have $250,000 in a Zions Bank single ownership savings account and $250,000 in a Zions Bank IRA, each account is insured for $250,000 separately.
You can’t increase FDIC insurance by dividing funds in the same ownership category among different accounts with the exception of IRAs and Keoghs as noted above. The type of account — whether checking, savings, CD, or outstanding official check, such as a cashier's check or other form of deposit—has no bearing on the amount of insurance coverage. The use of Social Security numbers or taxpayer identification numbers doesn’t determine insurance coverage either. So, having $250,000 in both a single ownership savings account and a single ownership CD, doesn’t result in more than $250,000 total insurance coverage.
Examples $2,000,000 FDIC-Insured Deposits for a Married Couple Husband’s single account $250,000 Wife’s single account $250,000 Husband and wife’s joint account $500,000 Husband’s IRA $250,000 Wife’s IRA $250,000 Husband’s payable on death to wife testamentary account $250,000 Wife’s payable on death to husband testamentary account $250,000 $3,500,000 FDIC-Insured Deposits for a Family or Group of Four Husband’s single account $250,000 Wife’s single account $250,000 Husband and wife’s joint account $500,000 1st child’s aggregate joint account funds $250,000 2nd child’s aggregate joint account funds $250,000 Husband’s IRA $250,000 Wife’s IRA $250,000 Husband’s payable on death to wife testamentary account $250,000 Wife’s payable on death to husband testamentary account $250,000 Husband’s payable on death to 1st child’s testamentary account $250,000 Husband’s payable on death to 2nd child’s testamentary account $250,000 Wife’s payable on death to 1st child’s testamentary account $250,000 Wife’s payable on death to 2nd child’s testamentary account $250,000
How is FDIC insurance calculated for my family’s living trust?
Accounts in the name of a living trust—often referred to as testamentary or revocable trusts—are insured separately from any individual or jointly-owned funds of the owner(s). For the purposes of FDIC-insurance coverage, a beneficiary is defined as a natural person, a charitable organization or a nonprofit entity properly organized under IRS code. Each trustor on the trust is insured to $250,000 for each entitled beneficiary. See the following example.
The Family Trust Trustors: Husband and wife Beneficiaries: Their 2 children Husband in trust for 1st child $250,000 Husband in trust for 2nd child $250,000 Wife in trust for 1st child $250,000 Wife in trust for 2nd child $250,000
Note: For purposes of this example, the hypothetical trust states that the beneficiary’s share will pass to the beneficiaries’ children if the beneficiary dies before the trustor(s). These grandchildren are not entitled to any trust assets or insurance coverage while their beneficiary parent is alive.
For additional qualifying account combinations, check with a Zions Bank representative, or ask for the FDIC brochure, “Your Insured Deposits.”
Please keep in mind that the examples provided above are for demonstrational purposes only and should not be relied upon as they may not directly apply to every account holder. Account holders should speak with a Zions Bank representative for additional information and to discuss their specific situations.
Learn more information about the FDIC. To understand how to maximize your own FDIC coverage, speak to a Zions Bank representative by calling 877-932-3342.