As a depositor in Amegy Bank, you are entitled to know how your deposits are insured, and how the amount of insurance protection can be increased beyond $250,000 through a combination of accounts. The following questions and answers provide you with information you need to make informed decisions regarding your deposits:
INTEREST-BEARING ACCOUNTS: FDIC Insurance Coverage Permanently Increased to $250,000 A new law that took effect on July 21, 2010 permanently raised the Federal Deposit Insurance Corporation (FDIC) maximum deposit insurance amount to $250,000. That coverage limit applies per depositor, per insured depository institution for each account ownership category. In 2008, the previous maximum insurance amount of $100,000 had been temporarily raised to $250,000 until Dec. 31, 2013, but the new law makes this change permanent.
NOTICE OF CHANGES IN TEMPORARY FDIC INSURACE COVERAGE FOR TRANSACTION ACCOUNTS All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.
The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.
For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.
How to Increase the Amount of Your FDIC Insurance Beyond $250,000 at Amegy Bank
As an Amegy Bank customer, you should know how your deposits are insured, and how the amount of insurance protection can be increased beyond $250,000 through a combination of accounts.Please review the information below and contact your Amegy banker should you have any questions.
Q: What is the basic amount of FDIC insured protection for each depositor?
A: The basic insured amount for each depositor has been increased to $250,000. The FDIC insurance protection is extended to deposits at Amegy Bank, including savings, NOW accounts, cashiers checks, official checks, pension accounts, letters of credit, checking, certificates of deposit, money orders, IRA and Keogh accounts.
Q: How can I increase the amount of my FDIC insurance at Amegy Bank beyond $250,000?
A: If your 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 separately insured. So you can have more than $250,000 insurance coverage in a single institution through a combination of different categories of ownership. The most common categories of ownership are single (or individual) ownership, joint ownership, and testamentary accounts.
In addition to the FDIC insurance on your other deposits, each depositor is also separately insured up to $250,000 for funds held for retirement purposes (i.e. Individual Retirement Accounts or Keoghs).
You cannot increase FDIC insurance by dividing funds owned in the same ownership category among different accounts. The type of account - whether checking, savings, certificate of deposit, or outstanding official check such as a cashier's check, or other form of deposit - has no bearing on the amount of insurance coverage. Furthermore, the use of Social Security numbers or taxpayer identification numbers does not determine insurance coverage.
EXAMPLES:
#1 $2,000,000 FDIC-Insured Deposits for a Married Couple
Husband's Individual Account
$250,000
Wife's Individual Account
$250,000
Husband and Wife Joint Account
$500,000
Husband's IRA
$250,000
Wife's IRA
$250,000
Husband Payable on Death to Wife*
$250,000
Wife Payable on Death to Husband*
$250,000
#2 $3,500,000 FDIC Insured Deposits for a Family or Group of Four
Husband's Individual Account
$250,000
Wife's Individual Account
$250,000
Husband and Wife 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 Payable on Death to Wife*
$250,000
Wife Payable on Death to Husband*
$250,000
Husband Payable on Death to 1st Child*
$250,000
Husband Payable on Death to 2nd Child*
$250,000
Wife Payable on Death of 1st Child*
$250,000
Wife Payable on Death of 2nd Child*
$250,000
Q: How is FDIC insurance calculated for my family living trust?
A: Accounts in the name of a living trust set up by a lawyer, also referred to as totten, 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 non-profit entity properly organized under IRS code. Each owner is insured to $250,000 for each entitled beneficiary. Take a look at the following example:
The Family Trust Trustees: Husband and Wife Beneficiaries: Their two 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: This trust states that the beneficiaries' share will pass to the beneficiaries' children if the beneficiary dies before the trustee(s). These grandchildren are not entitled to any trust assets or insurance coverage while their parent is alive.
For more information about the FDIC, please click here to visit their website.
* These illustrations also apply to other beneficiaries. A beneficiary is defined as a natural person, a charitable organization, or a non-profit entity properly organized under IRS code. For other qualifying combination accounts, check with a bank representative, or ask for the FDIC brochure, "Your Insured Deposit."
