Single Accounts

Single Ownership Accounts

All funds owned by an individual and deposited by him in one or more individual accounts are added together and insured up to the maximum of $125,000.
This is true whether the accounts are maintained in the name of the individual owning the funds, in the name of his agent or nominee, or in the name of a guardian, or custodian holding the funds for his benefit.

Scenarios calculating the coverage afforded by deposit insurance are presented below for each of the following types of Single Ownership Accounts:

Accounts held by an Individual Owning the Funds

Scenario:
A and B, husband and wife, each maintains a separate account as an individual account containing $125,000. In addition, they hold a joint account containing $125,000. The total of these accounts is $375,000.

Insurance Coverage:

A

$125,000

B

$125,000

A & B

$125,000

$375,000

 

Accounts held by Agents or Nominees

Funds owned by a principal and deposited in one or more deposit accounts in the name or names of agents or nominees shall be added to any individual deposit accounts of the principal and insured up to $125,000 in the aggregate.

Scenario:
A has $122,000 deposited separately in an individual account, and his agent B, deposits an additional $5,000 of A’s funds in a properly designated agency account. B also holds a $125,000 individual account in his own name.

Insurance Coverage:

A

$122,000

Deposited by B on behalf of A

$5,000

$127,000

A’s coverage limited to $125,000
B’s coverage limited to $125,000

Note:
If the institution’s records do not reflect the agency relationship, the amount of $5,000 will be allocated to B and the uninsured balance of B will be $5,000.

Accounts held by Guardian or Custodian

Funds held by a guardian or custodian, for the benefit of his ward or for a minor and deposited in one or more deposit accounts in the name of the guardian or custodian, shall be added to any individual deposit accounts of the ward or minor and insured up to $125,000 in the aggregate.

Scenario:
C, a minor, maintains an individual account of $2,500 in connection with a school savings programme. C’s grandfather makes a gift to him of $40,000 which is deposited in another account by C’s father, designated on the institution’s records as guardian or custodian. C’s father also maintains an individual account of $40,000.

Insurance Coverage:

C, a minor

$2,500

C’s guardianship account

$40,000

$42,500

C’s father $40,000

Accounts of Executors and Administrators

All funds belonging to a deceased person and deposited in one or more accounts, whether held in the name of the deceased person or in the name of his executor or administrator, are added together and insured to the $125,000 maximum.

Such funds are insured separately from the individual accounts of any of the beneficiaries of the estate or of the executor or administrator.

Scenario:
A, administrator of D’s estate, sells D’s automobile and deposits the proceeds of $2,500 in an account entitled “A, Administrator of the estate of D”. In the same institution there is an account containing $125,000 which D had opened just prior to his death.

Insurance Coverage:

A, administrator of D’s estate

$2,500

D

$125,000

$127,500

Insurance coverage

$125,000

 

Accounts Held by a Corporation, Partnership or Unincorporated Body or Association

All funds deposited in an account or accounts by a company, corporation, a partnership, sole trader or any unincorporated association are added together and insured to the $125,000 maximum.

Scenario:
X Corporation maintains a $125,000 account. The stock of the corporation is owned by A, B, C and D in equal shares. Each of these stockholders also maintains an individual account with the same institution.

Insurance Coverage:
Each of the accounts of the shareholders would be insured to $125,000. The account of the Corporation will be separately insured to the maximum.


Scenario:
The PQR Union has three branches. Each of the branches maintains a deposit account and the Institution’s records reveal that they contain funds BELONGING TO THE PARENT ORGANIZATION. All three accounts are in the same insured institution.

Insurance Coverage:
The three accounts are added together and insured up to the $125,000 maximum.

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