FDIC Insurance Coverage

How does FDIC protect you?

FDIC INSURANCE COVERAGE FAQ

What is FDIC?

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank fails. FDIC insures up to $250,000 per depositor, per insured bank, for each account ownership category. Desert Community Bank is a FDIC-insured bank.

What is covered by FDIC?
  • Checking accounts
  • Savings accounts
  • Negotiable Order of Withdrawal (NOW) accounts bank
  • Money Market Deposit Accounts (MMDAs)
  • Time deposits such as Certificates of Deposit (CDs)
  • Cashier’s checks, money orders and other official items issued by the bank
  • Individual Retirement Accounts (IRAs)
What is not covered by FDIC?
  • Stock investments
  • Bond investments
  • Mutual funds
  • Life insurance policies
  • Annuities
  • Municipal securities
  • Safe deposit boxes or their contents
  • U.S. Treasury bills, bonds or notes
Do I need to apply for FDIC Insurance?

No. Coverage is automatic when you open an account at an FDIC-insured bank or financial institution.

Can I be covered for more than $250,000?

The FDIC provides separate coverage for deposits held in different account ownership categories. You may qualify for coverage over $250,000 if you have funds held in different ownership categories and meet all FDIC requirements.

FDIC Deposit Insurance Coverage Limits by Account Ownership Category
Single Accounts (Owned by One Person) $250,000 per owner
Joint Accounts (Owned by Two or More Persons) $250,000 per co-owner
Certain Retirement Accounts (Includes IRAs) $250,000 per owner
Revocable Trust Accounts $250,000 per owner per unique beneficiary
Corporation, Partnership and Unincorporated Association Accounts $250,000 per corporation, partnership or unincorporated association
Irrevocable Trust Accounts $250,000 for the noncontingent interest of each unique beneficiary
Employee Benefit Plan Accounts $250,000 for the noncontingent interest of each plan participant
Government Accounts $250,000 per official custodian (more coverage available subject to specific conditions)
What about my business account?

Deposits made by a corporation, partnership, or unincorporated association are insured separately from the personal accounts of its stockholders, partners, or members. FDIC insures deposits by a corporation, partnership, or unincorporated association up to a maximum of $250,000. To qualify for this coverage, the entity must be engaged in an independent activity, meaning that the entity is operated primarily for some purpose other than to increase deposit insurance.

Sole proprietorship deposits are insured as single account deposits of the sole proprietor. The funds deposited by the sole proprietor will be added to their personal account at the same bank and the total will be insured to a maximum of $250,000.

Can my business qualify for additional insurance coverage?

No, a corporation, partnership, or unincorporated association cannot qualify for more than $250,000 in deposit insurance coverage for its deposits at one bank. If your business owns separate accounts for different purposes at the same bank, these accounts will be added together and insured up to $250,000.

Where can I get more information?

If you have further questions, you may visit an Desert Community Bank branch and speak to one of our associates

To learn more about FDIC insurance coverage or any other specific questions, contact FDIC toll free at 1-877-ASK-FDIC (1-877-275-3342) or visit www.fdic.gov/ and use the Customer Assistance Form.