Federal Deposit Insurance Corporation (FDIC) Coverage
What is the Federal Deposit Insurance Corporation (FDIC)?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the U.S. government to maintain stability and public confidence in the nation’s financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
They regularly review all FDIC-insured banks, such as BankUnited, to ensure standards are met.
Why is it important to you?
FDIC insurance protects deposits from loss up to the FDIC insurance limit (see below for limits), including principal and accrued interest. FDIC insurance covers traditional deposit accounts (checking, savings, money market deposit accounts and CDs). Coverage is automatic for BankUnited deposit clients.
Maximizing Your FDIC Insurance Coverage at BankUnited
BankUnited is a member of the Federal Deposit Insurance Corporation (FDIC), an independent agency of the U.S. government that protects bank depositors against the loss of their insured deposits.
At BankUnited, your deposits are covered by the FDIC for up to $250,000 per depositor per account ownership category.
Single ownership accounts are insured up to $250,000 per owner
Joint ownership accounts are insured up to at least $500,000 ($250,000 per co-owner)
IRAs are insured up to $250,000 per owner
Owners of revocable trust accounts (with five or fewer beneficiaries) are insured up to $250,000 per each unique beneficiary
Irrevocable trust accounts are usually insured up to $250,0001
BankUnited clients can qualify for more than $250,000 in FDIC insurance coverage, if funds are deposited in accounts with different ownership categories and the requirements for each ownership category are met. Talk to your banker for more details.
I have more than $250,000 in my deposit accounts at BankUnited. How can I ensure those funds are insured?
If the balances in your BankUnited single ownership accounts when added together exceed the standard FDIC insurance limit of$250,000, consider a combination of different account ownership categories. The most common account ownership categories are single accounts, joint accounts, and revocable trusts.
The following are potential examples to maximize your coverage:
A joint account is a deposit account owned by two or more people. If all requirements are met, the balance in the account can be insured up to $500,000 (each co-owner’s share will be insured up to $250,000, as long as the two co-owners have no other joint accounts at the bank).
An IRA can help you save for retirement and can provide an additional $250,000 in FDIC insurance coverage. Note that the existence of a beneficiary on an IRA does not increase the available insurance coverage.
A revocable trust account is a deposit account owned by one or more people that identifies one or more beneficiaries who will receive the deposits upon the death of the owner(s). Examples of revocable trust accounts including living trusts and informal revocable trusts commonly referred to as payable on death (POD) accounts. In general, adding a beneficiary to a revocable trust account can increase coverage as the owner is insured up to $250,000 for each unique beneficiary if there are five or fewer beneficiaries. If the account has more than one owner, the insurance coverage is calculated separately for example, one owner who has named three unique beneficiaries can receive insurance coverage up to $750,000. A different calculation method is used when a revocable trust account has six more unique beneficiaries.
Where can I go for more information on FDIC insurance?
For more information or to discuss options for maximizing your FDIC insurance coverage, please contact your banker.
You may also visit EDIE, the FDIC’s Electronic Deposit Insurance Estimator, to calculate your specific deposit insurance coverage. For general deposit insurance questions, please visit the FDIC's website or call (877) ASK-FDIC (877-275-3342).
1An owner or trustee of an irrevocable trust account who is unsure of the provisions of the trust should consult a legal or financial advisor.
The information in this notice is only a summary of aspects of FDIC insurance coverage presented in a non-technical way. This notice is not intended to be a legal interpretation of the FDIC’s laws and regulations on insurance coverage.