MAXIMIZE YOUR FDIC INSURANCE

If your combined Zions Bancorporation, N.A. account balances exceed $250,000, there are several quick and simple ways to increase or maximize your insurance coverage. 

Deposits maintained in different categories of legal ownership and meeting the FDIC’s requirements are separately insured. This way, you can have more than $250,000 insurance coverage at Zions Bancorporation, N.A. through a combination of different categories of ownership. The most common categories of ownership are single accounts, joint accounts, and revocable trust accounts. 

In addition to the FDIC insurance on your other deposits, each depositor is separately insured up to $250,000 for funds held in certain retirement accounts. 

For example, FDIC deposit insurance could increase to $500,000 for funds in joint accounts for two depositors. Each of those depositors could also have up to $250,000 of deposit insurance for funds in each of their single accounts, and another $250,000 of deposit insurance for funds in each of their IRAs. 

You cannot increase FDIC insurance by dividing funds in the same ownership category among different accounts. The type of account – whether checking, savings, CD, or outstanding cashier’s check or other form of deposit – has no bearing on the amount of insurance coverage. 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. 

The examples provided below are for demonstration purposes only and should not be relied upon as they may not directly apply to every account holder. Account holders should speak with their banker for additional information and may need to contact the FDIC (as the provider of the insurance) depending on the specific situation. 

Examples 

1. $2,000,000 FDIC-Insured Deposits for a Family or Group of Two 

• Customer 1’s single account: $250,000 
• Customer 2’s single account: $250,000 
  
• Joint account: $500,000 
  
• Customer 1’s IRA: $250,000 
  
• Customer 2’s IRA: $250,000 
  
• Customer 1’s payable on death to Customer 2*: $250,000 
  
• Customer 2’s payable on death to Customer 1*: $250,000 

 

2. $3,500,000 FDIC-Insured Deposits for a Family or Group of Four 

• Customer 1’s single account: $250,000 
• Customer 2’s single account: $250,000 
• Joint account: $500,000 
• Customer 3’s aggregate joint account fund: $250,000 
• Customer 4’s aggregate joint account funds: $250,000 
• Customer 1’s IRA: $250,000 
• Customer 2’s IRA: $250,000 
• Customer 1’s payable on death to Customer 2*: $250,000 
• Customer 1’s payable on death to Customer 3*: $250,000 
• Customer 1’s payable on death to Customer 4*: $250,000 
• Customer 2’s payable on death to Customer 1*: $250,000 
• Customer 2’s payable on death to Customer 3*: $250,000 
• Customer 2’s payable on death to Customer 4*: $250,000 

* These illustrations also apply to other beneficiaries. A beneficiary is defined as a natural person, charitable organization, or a non-profit entity properly organized under IRS code. 

Accounts in the name of a living trust – often referred to as testamentary, payable on death, 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 living natural person, charity (valid under IRS rules), or nonprofit organization (valid under IRS rules). Assuming all FDIC requirements are met, the funds are insured to $250,000 for each eligible beneficiary. See the following example. 

• Family Trust with Two Owners and Two Beneficiaries 
• Owner 1 in trust for Beneficiary 1*: $250,000 
• Owner 1 in trust for Beneficiary 2*: $250,000 
• Owner 2 in trust for Beneficiary 1*: $250,000 
• Owner 2 in trust for Beneficiary 2*: $250,000 

Please note: The FDIC requirements for funds in the “Revocable Trust Accounts” category are complex and include more requirements than listed in this example. Consider contacting the FDIC for support. 

* 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 possible ways to increase your FDIC deposit insurance, check with a banking representative or ask for the FDIC brochure, “Your Insured Deposit”.