FDIC Insurance

Understand Your Coverage

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. 

What is the basic amount of FDIC insured protection for each depositor?

The basic insured amount for each depositor is $250,000. The FDIC insurance protection is extended to deposits at Amegy Bank, including savings, checking, NOW accounts, cashiers checks, official checks, pension accounts, letters of credit, certificates of deposit, money orders, IRA and Keogh accounts.

How are funds in Sweep Investments insured?

If you have a checking account that "sweeps" funds into another FDIC insured account, the funds are subject to the $250,000 FDIC insurance limits. Funds swept into accounts not insured by the FDIC will not have any insurance.

How can I increase the amount of my FDIC insurance at Amegy Bank beyond $250,000?

If your combined 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 an 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 to 1st Child*

$250,000

Wife Payable on Death to 2nd Child*

$250,000

How is FDIC insurance calculated for my living trust?

Accounts in the name of a living trust, also referred to as totten, testamentary, payable upon 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 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

Trustors: 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 trustor(s). These grandchildren are not entitled to any trust assets or insurance coverage while their parent is alive.

Visit the FDIC for more information.

* 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."