Friday, August 1, 2008

FDIC Insurance: Ownership: Single: Part II

Single Accounts

What is considered a Single Account?

  1. A single account is a deposit owned by one person.

  2. Accounts established for one person by an agent, nominee, guardian, custodian, or conservator, including Uniform Transfers to Minors Act accounts, escrow accounts, and brokered deposit accounts.

  3. Accounts held in the name of business that is a sole proprietorship (DBA accounts)

  4. Accounts established for a decedent's estate.


If an individual has a deposit account titled in his or her name alone but gives another person the right to withdraw deposits from the account, the account will be insured as a single account only if the insured bank's deposit account records indicate that:

  1. The other signer is authorized to make withdrawals pursuant to a Power of Attorney

  2. the account is owned by one person and the other person is authorized to withdraw deposits on the owner's behalf (a convenience account)

If the insured bank's account records do not indicate that such a relationship exists, the deposit would be insured as a joint account.

Here is an example of Single Account

Account *****************Deposit Type******Account Balance

Marci Jones************** NOW************* 5,000.

Marci Jones****************Savings**********20,000

Marci Jones***************CD***************100,000

Marci's Memories (sole prop)*********checking*******25,000

Total Deposits********************************150,000

Amount Insured*****************************100,000

Amount uninsured***************************$50,000