FDIC insurance details

[Finance Dave]

Assume I'm a single person for this issue.

Let's say I have $250k worth of JP Morgan CDs in my Fidelity account, which is covered under FDIC rules.

What if I also buy $50k worth of JP Morgan CDs through my bank's offerings? Would that be a different "ownership category" according to FDIC rules, and therefore I'd still be covered in total if JP Morgan failed?

Or, since those investments are all in the same bank (JP Morgan), would they be added across my various accounts (retirement and banking) and therefore I'd not be covered for the $50k overage?

 

[Al18]

There is Morgan Stanley Trust in NY, which is different from Morgan Stanley Bank in UT, according to depositaccounts.com

 

[mrfeh]

I believe the limits are per account and not per bank, so you'd be covered.

I am not a lawyer or CPA.

 

[njhowie]

I believe the limits are per account and not per bank, so you'd be covered.

I am not a lawyer or CPA.

It is "per depositor" per bank.

If the accounts are titled the same, then only the $250k is covered.

The fact that the purchases were made through two different channels means nothing - the $250k total is all that is covered for an individual because it is the same bank. Differentiating by "account" is incorrect. By your reasoning, you could have multiple savings accounts at the same bank, and so long as none were over $250k they would all be fully covered, and that is incorrect. It is $250k combined.

 

[mrfeh]

It is "per depositor" per bank.

If the accounts are titled the same, then only the $250k is covered.

The fact that the purchases were made through two different channels means nothing - the $250k total is all that is covered for an individual because it is the same bank. Differentiating by "account" is incorrect. By your reasoning, you could have multiple savings accounts at the same bank, and so long as none were over $250k they would all be fully covered, and that is incorrect. It is $250k combined.

Ok, then the question becomes "are the accounts titled the same" in the scenario presented by the OP.

 

[njhowie]

Ok, then the question becomes "are the accounts titled the same" in the scenario presented by the OP.

Considering the information provided, that he's single and there were no trusts or joint accounts involved, why would you assume anything different?

Let's say **I** have $250k worth of JP Morgan CDs in **my** Fidelity account, which is covered under FDIC rules.

What if **I** also buy $50k worth of JP Morgan CDs through my bank's offerings?

 

[mrfeh]

Considering the information provided, that he's single and there were no trusts or joint accounts involved, why would you assume anything different?

I have no idea how banks title accounts when they are opened through different channels.

I'm not saying they'd be different; I'm saying I don't know.

 

[njhowie]

I have no idea how banks title accounts when they are opened through different channels.

I'm not saying they'd be different; I'm saying I don't know.

Ok, so stop. There is no difference. Channel has no bearing. I am telling you. Don't want to believe me, then go look it up.

It is $250k "per depositor, per bank", not per account.

The end.

The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000.

https://www.fdic.gov/resources/depo...ocuments/your-insured-deposits-english-hr.pdf

 

[mrfeh]

ok, so stop. There is no difference. Channel has no bearing. I am telling you. Don't want to believe me, then go look it up.

It is $250k "per depositor, per bank", not per account.

The end.

yes sir!!!!!

 

[latexman]

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

There are 14 FDIC deposit insurance ownership categories:
Single accounts — 12 C.F.R. § 330.6
Joint accounts — 12 C.F.R. § 330.9
Revocable trust accounts — 12 C.F.R. § 330.10
Irrevocable trust accounts — 12 C.F.R. § 330.13
Certain retirement accounts — 12 C.F.R. § 330.14(b)(2)
Employee benefit plan accounts — 12 C.F.R. § 330.14
Business/Organization accounts — 12 C.F.R. § 330.11
Government accounts (public unit accounts) — 12 C.F.R. § 330.15
Mortgage servicing accounts for principal and interest payments — 12 C.F.R. § 330.7(d)
Accounts held by a depository institution as the trustee of an irrevocable trust — 12 C.F.R. § 330.12
Annuity contract accounts — 12 C.F.R. § 330.8
Public bond accounts — 12 C.F.R. § 330.15(c)
Custodian accounts for Native Americans — 12 C.F.R. § 330.7(e)
Accounts deposited by an IDI pursuant to the Bank Deposit Financial Assistance Program of the Department of Energy — 12 U.S.C. § 1817 (i)(3)

One person can have more than one account ownership category.

 

[njhowie]

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

There are 14 FDIC deposit insurance ownership categories:
Single accounts — 12 C.F.R. § 330.6
Joint accounts — 12 C.F.R. § 330.9
Revocable trust accounts — 12 C.F.R. § 330.10
Irrevocable trust accounts — 12 C.F.R. § 330.13
Certain retirement accounts — 12 C.F.R. § 330.14(b)(2)
Employee benefit plan accounts — 12 C.F.R. § 330.14
Business/Organization accounts — 12 C.F.R. § 330.11
Government accounts (public unit accounts) — 12 C.F.R. § 330.15
Mortgage servicing accounts for principal and interest payments — 12 C.F.R. § 330.7(d)
Accounts held by a depository institution as the trustee of an irrevocable trust — 12 C.F.R. § 330.12
Annuity contract accounts — 12 C.F.R. § 330.8
Public bond accounts — 12 C.F.R. § 330.15(c)
Custodian accounts for Native Americans — 12 C.F.R. § 330.7(e)
Accounts deposited by an IDI pursuant to the Bank Deposit Financial Assistance Program of the Department of Energy — 12 U.S.C. § 1817 (i)(3)

One person can have more than one account ownership category.

Yes, most of us know all of this. Let's not complicate what the original question was.

As it relates to the question being asked, single person, no other categories, the answer is straightforward. It asked regarding the handling when purchased from the same bank, but different points of access. The mechanism to purchase the CDs or any other bank product is irrelevant for this purpose.

 

[CRLLS]

^+1 Latexman had it correct.

Copied from https://www.fdic.gov/resources/deposit-insurance/faq/:

Q: How much deposit insurance coverage do I qualify for?

A: The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category.

That ownership category is the key. IMO, assuming that the Fido account is a TOD account (after-tax account), then you are only covered to 250,000. If the account was in a 401k managed by Fido or a tIRA, then the full 300,000 would be covered, but only 250,000 maximum per account though.

 

[latexman]

Assume I'm a single person for this issue.

Let's say I have $250k worth of JP Morgan CDs in my Fidelity account, which is covered under FDIC rules.

What if I also buy $50k worth of JP Morgan CDs through my bank's offerings? Would that be a different "ownership category" according to FDIC rules, and therefore I'd still be covered in total if JP Morgan failed?

Or, since those investments are all in the same bank (JP Morgan), would they be added across my various accounts (retirement and banking) and therefore I'd not be covered for the $50k overage?

Yes, most of us know all of this. Let's not complicate what the original question was.

As it relates to the question being asked, single person, no other categories, the answer is straightforward. It asked regarding the handling when purchased from the same bank, but different points of access. The mechanism to purchase the CDs or any other bank product is irrelevant for this purpose.

I saw a retirement account category ("retirement") and a single account category ("banking") in the original question.