Federal Deposit Insurance Corporation (FDIC)
Deposit insurance rules and the six-month grace period after an account holder dies
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6-month grace period for FDIC insurance coverage; bank account access timelines vary by institution
The Federal Deposit Insurance Corporation insures bank deposits up to $250,000 per depositor, per institution, per ownership category. When an account holder dies, FDIC provides a 6-month grace period during which insurance coverage is maintained as if the person were still alive, giving heirs time to restructure accounts without losing coverage.
Notifying the FDIC when someone dies
The FDIC does not receive death reports — notify the bank directly when an account holder dies. The executor or personal representative should contact each FDIC-insured institution where the deceased held accounts. FDIC deposit insurance coverage is maintained for 6 months after death under 12 C.F.R. 330.3(j), providing time to restructure accounts. If a bank fails during this period, the FDIC treats the deceased as still alive for insurance purposes.
Timeline: Restructure accounts within 6 months of death to preserve full FDIC coverage
- •Contact each FDIC-insured bank where the deceased held accounts
- •Provide a certified copy of the death certificate
- •Ask about the account types and current coverage levels
- •FDIC treats the deceased as still alive for 6 months for insurance purposes
- •Coverage levels remain unchanged during this period unless accounts are restructured
- •The grace period will not be applied if it would result in less coverage
- •Use this time to restructure accounts if needed to stay within insurance limits
- •Single accounts: coverage continues at $250,000 for 6 months, then reverts to the new owner's limits
- •Joint accounts: the surviving co-owner's coverage continues at $250,000 per co-owner for 6 months
- •POD/trust accounts: coverage may change immediately if a beneficiary has died (no grace period)
- •Consider consolidating or redistributing deposits to stay within insurance limits
Required Documents
- Certified copy of the death certificate
- Account holder's identification and account numbers
- Letters testamentary or letters of administration (for estate access)
- Trust document (if accounts are held in a revocable trust)
- Government-issued photo ID of the executor or personal representative
Timeline
6-month grace period for FDIC insurance coverage; bank account access timelines vary by institution
Survivor benefits
6-Month Grace Period for Deposit Insurance
The FDIC insures a deceased person's accounts as if they were still alive for 6 months after death (12 C.F.R. 330.3(j)). During this grace period, insurance coverage does not change unless accounts are restructured. This allows heirs and estate administrators to reorganize accounts without losing coverage. The grace period will not be applied if it would result in less coverage than would otherwise apply.
Eligibility: All deposit accounts held by the deceased at FDIC-insured institutions
Amount: Up to $250,000 per depositor, per institution, per ownership category
How to apply: The grace period applies automatically. Notify the bank of the death and work with the institution to restructure accounts within 6 months.
Learn more →Joint Account Coverage After Death
Joint accounts receive $250,000 in FDIC coverage per co-owner. When one co-owner dies, the 6-month grace period preserves the deceased co-owner's share of coverage while the account is administered. After 6 months, the surviving co-owner's coverage reverts to their individual ownership category limits.
Eligibility: Surviving co-owner of a joint deposit account
Amount: $250,000 per co-owner
How to apply: Contact the bank with a certified death certificate. The surviving co-owner should review whether account restructuring is needed before the 6-month grace period expires.
Learn more →POD/Trust Account Coverage Changes
Under the unified trust account rule (12 C.F.R. 330.10, effective April 1, 2024), POD, revocable trust, and irrevocable trust accounts receive $250,000 in coverage per owner per eligible beneficiary, up to $1,250,000 per owner. When the account owner dies, the 6-month grace period applies. When a beneficiary dies, coverage is reduced immediately with no grace period.
Eligibility: Beneficiaries of POD, revocable trust, or irrevocable trust accounts at FDIC-insured institutions
Amount: $250,000 per owner per eligible beneficiary (up to $1,250,000 per owner)
How to apply: Contact the bank to report the death. If the account owner died, the grace period applies automatically. If a beneficiary died, coverage adjusts immediately — review trust documents for successor beneficiaries.
Learn more →Frequently asked questions
The FDIC insures a deceased person's accounts as if they were still alive for 6 months after death (12 C.F.R. 330.3(j)). During this grace period, insurance coverage does not change unless accounts are restructured. After 6 months, coverage reverts to the new owner's limits based on ownership category.
Joint accounts receive $250,000 in FDIC coverage per co-owner. When one co-owner dies, the 6-month grace period preserves the deceased's share of coverage. After 6 months, the surviving co-owner's deposits are recalculated under their individual ownership categories.
No. The 6-month grace period only applies when the account owner dies. If a POD (payable-on-death) or trust account beneficiary dies, coverage is reduced immediately. For example, if an account has two POD beneficiaries and one dies, coverage drops from $500,000 to $250,000 right away.
If an FDIC-insured bank fails during the 6-month grace period, the FDIC treats the deceased as still alive for insurance purposes. Coverage is calculated using the account structure as of the date of failure. Insured deposits are typically paid the next business day.
No. If the bank is operating normally, contact the bank directly to handle the deceased's accounts. The FDIC only becomes involved if the bank fails. In a bank failure, insured deposits are paid automatically — you do not need to file a claim for amounts within the $250,000 limit.
FDIC insures up to $250,000 per depositor, per FDIC-insured institution, per ownership category. Different ownership categories (single, joint, trust, retirement) are insured separately, so one person can have more than $250,000 in total coverage at the same bank.
Use the FDIC's Electronic Deposit Insurance Estimator (EDIE) at edie.fdic.gov. Enter your bank, account types, and balances to see your exact coverage. You can also verify that a bank is FDIC-insured using BankFind at banks.data.fdic.gov.
FDIC covers checking accounts, savings accounts, money market deposit accounts, certificates of deposit (CDs), and certain prepaid cards. FDIC does not cover stocks, bonds, mutual funds, crypto assets, life insurance policies, annuities, safe deposit box contents, or U.S. Treasury securities, even if purchased at an FDIC-insured bank.
Effective April 1, 2024, the FDIC unified coverage for POD, revocable trust, and irrevocable trust accounts under a single trust account category (12 C.F.R. 330.10). Each owner is insured up to $250,000 per eligible beneficiary, with a maximum of $1,250,000 per owner if five or more beneficiaries are named. Eligible beneficiaries include living natural persons and recognized charitable or non-profit organizations.
Sources
Data sourced from Federal Deposit Insurance Corporation primary sources (7 pages reviewed). How we research.
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6-month grace period for FDIC insurance coverage; bank account access timelines vary by institution