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FDIC Insured Deposits Analysis

Updated: Mar 27, 2023


On March 10th, 2023, Silicon Valley Bank was halted due to a bank run. This marked the second largest bank failure in US history and the biggest since 2008.


97.3% of Silicon Valley Bank depositors are not FDIC insured and face potential losses. For those that are covered by FDIC insurance, they will be able to have their deposits up to $250,000 refunded, with payments made on March 13th 2023. FDIC insurance is applicable for traditional deposit accounts such as checking accounts, savings accounts and money market savings accounts. Certificates of Deposit (CDs) are also covered up to $250,000 per depositor, per insured bank and for each account ownership category under the FDIC's general deposit insurance rules.


It is important for depositors to note that coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. Moreover, in order to be eligible for coverage, funds must be placed in a deposit product at the FDIC-insured bank.



Current State

  • Silicon Valley Bank, a top 20 bank, has been halted as of March 10, 2023 (bank run occurred).

  • This is the second largest bank failure in US history, with the largest bank failure since 2008.

  • Only 2.7% of Silicon Valley Bank deposits are less than $250,000

  • 97.3% are not FDIC insured

  • Those that are insured, will receive their amount by the FDIC on March 13, 2023.



How FDIC Works

  • FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance.

  • Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution.

  • Must place funds in a deposit product at the FDIC-insured bank.

  • Deposits in checking accounts, savings accounts, money market savings accounts and Certificates of Deposit (CDs) are insured up to $250,000 per depositor, per insured bank, for each account ownership category under the FDIC's general deposit insurance rules.

  • The following are examples of deposit products which are insured by the FDIC

    • Checking accounts

    • Savings accounts

    • Money market deposit accounts

    • Certificates of deposit (CD)

    • Prepaid cards (assuming certain FDIC requirements are met)


FDIC Ownership Categories

  • The amount of FDIC insurance coverage you may be entitled to, depends on the FDIC ownership category.

    • Single Account

    • Certain retirement accounts

    • Joint accounts

    • Revocable trust accounts

    • Irrevocable trust account

    • Employee benefit plan account

    • Corporation, Partnership, or Unincorporated Association Account

    • Government account

  • Single account

    • A deposit account owned by one person, without named beneficiaries, including:

      • Checking accounts

      • Savings accounts

      • Money market deposit accounts

      • Blue Shield

  • Certain Retirement accounts

    • FDIC deposit insurance covers retirement accounts in which plan participants have the right to direct how the money is invested, including:

      • Individual Retirement Accounts (IRAs)

      • Self-directed defined contribution plans, such as a 401k or profit-sharing plan

      • Self-directed Keogh plan accounts

      • Section 457 deferred compensation plan accounts, whether self-directed or not

  • Joint Account

    • A deposit account owned by two or more people, without named beneficiaries. To qualify for coverage, all owners must:

      • Be living people

      • Have equal rights to make withdrawals

      • Self-directed Keogh plan accounts

      • Sign the deposit account signature card (unless the account is a CD). Electronic signatures meet this requirement.

  • Revocable trust account

    • 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). This includes both formal "Living" Trusts and informal In Trust For (ITF)/ Payable on Death (POD) accounts.

      • A revocable trust can be revoked, terminated, or changed at any time at the discretion of the owner(s). The account title must disclose the trust relationship with phrases such as Living/Family Trust, POD, or ITF.

      • Beneficiaries must be people, charities, or non-profit organizations, and must either be named in the bank records or identified in the trust document.

  • Irrevocable trust account

    • A deposit account held in connection with an irrevocable trust established by statute or a written trust agreement. The owner contributes deposits or other property to the trust and gives up all power to cancel or change the trust.

    • Irrevocable trusts typically have contingent interests which result in the trust being insured for a maximum of $250,000, regardless of the number of beneficiaries designated. However, the non-contingent interests of a beneficiary in all irrevocable trusts established by the same owner and held at the same bank are added together and insured up to $250,000.

    • Since irrevocable trusts usually contain conditions that affect the interests of the beneficiaries or provide a trustee or a beneficiary with the authority to invade the principal, insurance coverage for an irrevocable trust account usually is limited to $250,000.

    • An owner or trustee of an irrevocable trust account who is unsure of the provisions of the trust should consult a legal or financial advisor.

  • Employee benefit plan account

    • A deposit of a pension plan, defined benefit plan, or other employee benefit plan that is not self-directed. An employee benefit plan account is an account representing funds of a plan where investment decisions are made by a plan administrator (not by the participants).

    • The interests of each participant's non-contingent interest under the plan is insured up to $250,000 per bank. For plans where the interests are contingent, such as health and welfare plans, the coverage is $250,000 for the plan itself.

  • Corporation, partnership, or unincorporated association account

    • Deposits owned by corporations, partnerships, and unincorporated associations, including for-profit and not-for-profit organizations. The corporation, partnership, or unincorporated association must be separately organized under state law and operate primarily for some purpose other than to increase deposit insurance coverage.

    • All deposits owned by a corporation, partnership, or unincorporated association at the same bank are added together and insured up to $250,000, separately from the personal accounts of the owners or members.

    • To qualify for insurance coverage under this ownership category, a corporation, partnership or unincorporated association must be engaged in an "independent activity," meaning that the entity is operated primarily for some purpose other than to increase deposit insurance coverage.

    • l deposits owned by a corporation, partnership, or unincorporated association at the same bank are combined and insured up to $250,000.

    • Accounts owned by the same corporation, partnership, or unincorporated association but designated for different purposes are not separately insured.

    • Accounts held in the name of a sole proprietorship are not insured under this ownership category. Rather, they are insured as the single account deposits of the owner, added to the owner's other single accounts, if any, at the same bank and the total insured up to $250,000.

  • Government account

    • Government accounts include deposit accounts owned by:

      • The United States, including federal agencies

      • Any state, county, municipality (or a political subdivision of any state, county, or municipality), the District of Columbia, Puerto Rico and other government possessions and territories

      • An Indian tribe




FDIC Resources


  • EDIC Calculator

    • Designed to give an accurate deposit insurance calculation, assuming it is properly used and the account information is correctly entered

  • Examples of insured deposits

    • Comprehensive description of FDIC deposit insurance coverage for the most common account ownership categories


  • Key contact information

    • Deposit Insurance Coverage

    • Toll-free number:

      • 877-ASKFDIC (877-275-3342); Option 1



Things to Keep in Mind

  • SVB happened in less than 1 week and it is yet to be seen how this will affect other banking institutions.

  • Risks come in for those individuals and companies who have bank accounts with more than 250k (or 500k if joint account).


Next Steps

  • Recommended to walk through the EDIE (FDIC’s Electronic Deposit Insurance Estimator) calculator to determine, per bank account the risk of uninsured amounts

  • Keep an eye out for additional fall out from other banking institutions

  • If a client has a complex situation with large amounts at risk and they want consulting, charging minimum $2,500 and hourly as you go over.




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