Federal Deposit Insurance Corporation (FDIC)

within 6 months of the date of death; insurance is then provided on the basis of actual ownership^{1, 2}

For six months after an owner's death, the FDIC insures the deceased owner's accounts at FDIC-insured banks as if the owner were still alive. Coverage does not change in that time unless the accounts are restructured (retitled or replaced to reflect the change in ownership) by those authorized to do so.^{1, 2}

The grace period never operates to reduce coverage. If an account is not restructured within six months, insurance is then provided on the basis of actual ownership.^{2, 3}

A bank failure in the six months after the death is handled with the deceased treated as still an owner. Insurance covers each depositor's balance dollar for dollar, including interest accrued through the date of the failure, up to the limit.¹

Each co-owner of a joint account is insured up to $250,000 for the combined amount of their interests in all joint accounts at the same bank. For up to six months after a co-owner dies, the FDIC insures the account as though the decedent were still an owner, assuming the titling is unchanged.⁴

After the grace period, a joint account is insured on actual ownership, which commonly moves the funds from the Joint Accounts category to the surviving owner's Single Accounts category, insured up to $250,000.⁴

Since April 1, 2024, 12 C.F.R. 330.10 governs coverage for deposits of revocable trusts, including POD, ITF, ATF, TOD and Totten accounts and formal living trusts, and of most irrevocable trusts.^{5, 6}

The grace period applies to the death of a trust owner, not of a named beneficiary, so a beneficiary's death may reduce coverage immediately. Where the trust designates a successor beneficiary, the FDIC considers the successor when the primary beneficiary has died.⁵

Funds held in the name of a decedent, or of the executor, administrator or other personal representative of the estate, are added together with the decedent's other single accounts at that bank and insured up to $250,000 in the aggregate.^{7, 8}

The FDIC treats the deceased as the sole owner of an estate account, so estate beneficiaries do not increase coverage and there is no pass-through coverage to them. The estate account is insured separately from the personal accounts of the personal representative and of the beneficiaries.⁷

There is no death report filed with the FDIC. The executor or personal representative contacts each FDIC-insured bank where the deceased held accounts.¹

While the bank is open and operating, the deceased's accounts are handled with the bank directly. The FDIC answers coverage questions but does not administer the account, and becomes involved only if the bank fails.¹

The grace period applies automatically and nothing is filed with the FDIC. In a bank failure, the FDIC identifies depositors and pays insured deposits automatically, with no claim to file for amounts within the limit.¹

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Deposits in the same category at the same bank are added together; because categories are insured separately, one person can be covered for more than $250,000 at one bank.^{9, 10, 11}

An owner's trust deposits are insured for the number of owners times the number of eligible beneficiaries times $250,000, up to $1,250,000 per owner for all trust accounts, reached when five or more eligible beneficiaries are named.⁵

An eligible trust beneficiary is a natural living person, a charitable organization recognized under the Internal Revenue Code or a non-profit entity recognized under the Internal Revenue Code. For-profit entities and pet trusts do not count.⁵

The FDIC insures checking accounts, NOW accounts, savings accounts, money market deposit accounts, time deposits such as CDs, and cashier's checks, money orders and other official items issued by a bank.¹

It does not insure stocks, bonds, mutual funds, crypto assets, life insurance policies, annuities, municipal securities or safe deposit box contents, even if bought at an insured bank. U.S. Treasury bills, bonds and notes are not FDIC-insured but are backed by the full faith and credit of the U.S. government.¹