FDIC: Electronic Deposit Insurance Estimator (EDIE)

Disclaimer: The following definitions or terms in this glossary have been provided solely to describe their use consistent with FDIC deposit insurance coverage. Some words or terms, especially those that are common in legal usage, may have different or additional definitions outside of this context.

Account Balance: The dollar amount including principal and interest for a specific account.

Account Category: A specific form of account ownership as set forth in the FDIC deposit insurance regulations. When the requirements for each ownership category are met, the deposits held in that ownership receive separate FDIC insurance coverage. The most common ownership categories are: single; certain retirement; joint; revocable trust; irrevocable trust; employee benefit plan; corporation, partnership and unincorporated association; and public unit. Also called Ownership Category.

Account Records: Account records include signature cards, certificates of deposit (CDs), passbooks, account ledgers and computer records that relate to the bank's deposit-taking function. Also called Bank Account Records and Deposit Account Records.

Account Type: The deposit instrument (e.g., passbook savings, checking, CD) into which funds are deposited.

Agent: An individual authorized to act on behalf of another person or entity, the principal.

Agent Account: An account established by an individual or legal entity on behalf of the owner of the funds—See also Fiduciary Account, Power of Attorney, Brokered CD, and Attorney Trust Account.

Annuity: A contract underwritten by an insurance company that guarantees income in exchange for a lump sum or periodic payment.

Ascertainable Interest: A participant's share in a trust or employee benefit plan that is determinable without contingencies.

Assessments: The insurance premiums paid by FDIC-insured institutions.

Attorney Trust Account: A fiduciary account established by an attorney, containing funds held by the attorney on behalf of one or more clients. Also called IOLTA accounts.

Bank Account Records: Bank account records include signature cards, certificates of deposit (CDs), passbooks, account ledgers and computer records that relate to the bank's deposit-taking function. Also called account records and deposit account records..

Bank Failure: When a bank is closed by its chartering authority and the FDIC is named as receiver.

Bank Find: A searchable database that allows a user to retrieve information either about a group of banks (such as all banks with a given name or in a given location) or for a single FDIC-insured institution by entering increasingly specific search criteria. In addition to confirming the insured status of a bank, the Bank Find system also provides a wide variety of information about each bank, including:

How long the bank has been insured
The name under which the bank is currently insured by the FDIC
The location(s) of the bank's main and branch office(s), by state, including street addresses
The bank's primary Internet website address (as provided by the bank to the FDIC)
A brief history of the bank, listing events such as mergers, branch acquisitions, etc., by date
The operating status of the bank—e.g. is it open and operating or was it closed by its chartering authority and the FDIC named as receiver.

Bank Merger: When two institutions merge together, or when one institution is assumed by another institution.

Bank Rating: A rating assigned to a bank by one or more analysts based on the perceived safety and soundness of the bank.

Bank Rating Service: A private company that analyzes a bank's performance over time and then assigns ratings based on the perceived safety and soundness of the bank.

Basic Insurance Amount: The basic FDIC insurance amount has been temporarily increased from $100,000 to $250,000 per depositor, per bank . This coverage level is in effect through December 31, 2009, when the basic insurance limit is scheduled to return to $100,000, except for certain retirement accounts. Deposits an individual holds in certain retirement accounts, such as IRAs, will continue to be separately insured up to $250,000 after December 31, 2009.

Beneficiary: A person or entity named in either the bank account records or in a written trust that is entitled to receive funds upon the account owner's death.

Brokered CD: A Certificate of Deposit account established at an insured bank by an agent or broker that represents the deposits of one or multiple investors.

Cashier's Check: A check drawn upon a bank. It is considered a deposit and eligible for deposit insurance coverage. Also called Official Items.

Certain Retirement Accounts: Federal law specifies that only the following types of retirement plan deposits qualify for coverage as certain retirement accounts:

Traditional, Roth, Simplified Employee Pension (SEP) and Savings Incentive Match Plans for Employees (SIMPLE) Individual Retirement Accounts (IRAs)
Section 457 deferred compensation plan accounts, such as eligible deferred compensation plans provided by state and local governments
Self-directed defined contribution plan accounts, such as self-directed 401(k) plans, self-directed SIMPLE IRAs held in the form of 401(k) plans, self-directed defined contribution money purchase plans and self-directed defined contribution profit-sharing plans
Self-directed Keogh plan accounts (or H.R. 10 plan accounts) designed for self-employed individuals. Certificate of Deposit (CD)—A savings instrument that pays interest for specific period of time (term), at either a set or variable interest rate, and which is redeemable upon maturity. Also called Time Certificates and Investment Certificates

Certain retirement accounts are a separate account ownership category.

Certificate of Deposit (CD): A savings instrument that pays interest for specific period of time (term), at either a set or variable interest rate, and which is redeemable upon maturity. A CD is a deposit type, not an account ownership category. The amount of coverage available to the owner of a CD depends on the ownership category (single, joint, trust, IRA) in which the CD is held and what other deposit accounts the owner holds in that same category at the same bank. Also called Time Certificates and Investment Certificates.

Contingent Interest: A participant's share in a trust or employee benefit plan that is not determinable because of uncertain conditions.

Corporation: An incorporated business that includes both for-profit and not-for-profit entities. Corporation accounts are a separate ownership category which includes partnerships and unincorporated organizations.

Corporate Merger: When two incorporated businesses merge, or when one business acquires another.

Corporation, Partnership or Unincorporated Association Account: A deposit account held in the name of a corporation, partnership or unincorporated association engaged in independent activity. Corporation, partnership and unincorporated association accounts are a separate account ownership category. This category does not, however, include accounts held in the name of a sole proprietorship. Deposits held in the name of a sole proprietorship are insured in the single account ownership category, as the personal deposits of the business owner.

Custodial Account: A fiduciary account where a custodian transacts business on the account on behalf of the actual owner of the funds, usually a minor. Also called Uniform Transfer to Minor Act (UTMA) accounts.

DDA: Demand Deposit Account. A noninterest-bearing checking account. DDA is a deposit type, not an account ownership category. The amount of coverage available to the owner of a DDA would depend on the ownership category (single, joint, trust, IRA) in which the account is held and what other deposit accounts the owner holds in that same category at the same bank.

Decedent Account: An account held in a deceased person's name or in the name of their estate. Also called Estate Accounts.

Defined Contribution Plan Account: A deposit account held in the name of an employee benefit plan as defined in section 3(34) of the Employee Retirement Income Security Act (ERISA). The most common fall under section 401(k) of the Act. Participants in such plans and/or their employers make regular contributions, usually on a pre-tax basis, as a way of saving for retirement. A defined contribution plan can be established by or for a single participant or for multiple participants.

When the plan participant(s) can direct where their assets are invested, including being deposited into a specific, FDIC-insured bank, the plan is considered ‘self-directed’. Self-directed defined contribution plan accounts are insured in the certain retirement account ownership category.
When a plan administrator (who may or may not also be a participant) directs the plan’s investments on behalf of all participants, the plan is NOT considered self-directed. Accounts held by these defined contribution plans are insured in the employee benefit plan ownership category.

Deposit: Funds placed with an FDIC-insured bank and eligible for FDIC insurance coverage (see Deposit Type below).

Depositor: A person or entity (such as a corporation) who deposits funds at an FDIC-insured institution.

Deposit Account Records: Deposit account records include signature cards, certificates of deposit (CDs), passbooks, account ledgers and computer records that relate to the bank's deposit-taking function. Also called Account Records and Bank Account Records.

Deposit Broker: A person or legal entity that acts as an intermediary in placing deposits (usually in large denominations) with FDIC-insured banks.

Deposit Insurance Fund (DIF): The fund maintained by the FDIC to insure deposits at failed financial institutions.

Deposit Type: The type of transaction account or savings instrument into which funds are deposited. This includes checking accounts, savings accounts, CDs and money market deposit accounts (MMDAs).

EDIE The Estimator: The Electronic Deposit Insurance Estimator (EDIE) calculator allows users to enter information on their deposit accounts at an insured bank and generate a report showing what funds are insured and what funds (if any) are uninsured.

Employee Benefit Plan Account: A deposit held under the terms of any plan that satisfies the definition of an employee benefit plan in section 3(3) of the Employee Retirement Income Security Act of 1974 (ERISA), including:

Defined contribution plans, such as a 401(k) plan, in which each participant has one or more accounts made up of contributions from the participant and/or the employer and investments are directed by a plan administrator and not each participant
Defined benefit plans in which the employer is obligated to pay an employee a certain benefit amount (for example, an amount based on the retired employee's years of service and salary at the time of retirement)
Employee welfare plans or welfare benefit plans, which are established by an employer or union to provide employees with medical, health, hospitalization benefits or income in the event of sickness, accident or death. (Note: Welfare plans generally are funded through a trust)
Keogh plans, as defined in section 401(d) of the Internal Revenue Code of 1986 that are not self-directed.

Employee benefit plan accounts are a separate account ownership category.

Escrow Account: A type of fiduciary account in which funds are held by an agent for a client (the actual owner of the funds), usually pending some sort of transaction. Escrow accounts include a real estate agent's client earnest money account, a rental collection account for a property manager, and insurance escrow accounts managed by an insurance agent.

Estate Account: An account held in the deceased person's name or in the name of their estate. Also called Decedent Accounts.

Failed Bank: An FDIC-insured bank that has been closed by its chartering authority.

Family Trust: A formal trust created for estate planning purposes. A revocable family trust is one in which the owner/grantor retains control over the funds during his or her lifetime, but also identifies beneficiaries who will receive trust assets upon the owner’s death. Also called living trusts. An irrevocable family trust is usually created following the death of the owner of a revocable family or living trust. In these cases, the trust, although now irrevocable, remains insured under the rules for formal and informal revocable trust accounts. See Irrevocable Trust.

Fiduciary Account: Accounts owned by one party but held in a fiduciary capacity by another party. Fiduciary relationships may include, but are not limited to, an agent, nominee, guardian, executor or custodian. Common fiduciary accounts include Uniform Transfer to Minors Act (UTMA) accounts, escrow accounts, Interest on Lawyers Trust Accounts (IOLTA), and deposit accounts obtained through a broker.

Financial Institution Employee's Guide to Deposit Insurance: A comprehensive manual on FDIC deposit insurance coverage developed for use by bank personnel.

Formal Revocable Trust Account: A deposit held in the name of a written trust created for estate planning purposes in which the owner/grantor retains control over the funds during his or her lifetime, but also identifies beneficiaries who will receive trust assets upon the owner’s death. Also called living trusts and family trusts. Formal revocable trust accounts are a separate account ownership category, which also includes informal revocable trust accounts such as payable on death, in trust for, testamentary or Totten trust accounts.

Government Account: An account established by an official custodian containing funds of a public unit or political subdivision. Also known as public unit accounts. Government accounts are a separate account ownership category.

Grantor: A person who establishes a revocable or irrevocable trust. This person is also referred to as the trust owner, settlor or trustor.

Holding Company: A company that owns or controls one or more banks.

Independent Activity: A corporation, partnership or unincorporated association shall be deemed to be engaged in an independent activity if the entity is operated primarily for some purpose other than to increase deposit insurance coverage.

Individual Account: An account held in the name of one person that does not name beneficiaries. Also called single accounts.

Individual Retirement Account (IRA): A deposit account that qualifies under Section 408(a) of the Internal Revenue Code of 1986. Retirement accounts that meet those requirements include:

Traditional IRAs
Roth IRAs
Simplified Employee Pension (SEP) IRAs, and
Simplified Incentive Match Plans for Employees (SIMPLE) IRAs.

All types of IRA deposit accounts are insured in the certain retirement account ownership category.

Informal Revocable Trust: An informal revocable trust account – also known as a payable on death, in trust for, testamentary or Totten trust account -- is created when the account owner signs an agreement, usually part of the bank's signature card, stating that the funds are payable to one or more beneficiaries upon the owner's death. Informal revocable trust accounts and formal revocable trust accounts are insured in the same account ownership category.

Interest Check: A bank-issued check representing interest earned on an account. Also called an Official Item.

Insurance Regulations: The regulations governing the amount of insurance coverage provided by the FDIC to the depositors of a failed bank. They can be found at 12 C.F.R. Part 330.

Insured Deposits: Deposits at an FDIC-insured bank with balances equal to or less than the applicable FDIC insurance limits.

IOLTA Account: Interest on Lawyers Trust Account. A fiduciary account established by an attorney, containing funds held by the attorney on behalf of one or more clients. Also called Attorney Trust Accounts.

In Trust For (ITF): Term used for informal revocable trust accounts to evidence the owner’s intention that the deposit account is payable to the named beneficiaries upon the death of the owner. Terms and acronyms representing the same intention are payable on death (POD) and as trustee for (ATF). ITF/POD/ATF accounts are also known as testamentary or Totten trust accounts, and are insured in the revocable trust account category, together with formal revocable trust accounts.

Irrevocable Trust Account: A deposit account held in the name of a written trust in which the owner (the person who created the trust) does not possess power to terminate or revoke the trust agreement although the owner may have a retained interest in the assets of the trust. An irrevocable trust may be created upon the death of the grantor of revocable living trust, the actual execution or creation of an irrevocable trust agreement, or by statute or a court order. Irrevocable trust accounts are a separate account ownership category. If, however, a revocable trust became irrevocable upon the death of the owner, the trust would continue to be insured under the rules for revocable trusts.

Joint Account: A deposit account owned by two or more people that does not name beneficiaries. Joint accounts are a separate account ownership category.

Keogh Account: A deposit account held under a Keogh plan (also known as an H.R. 10 plan) which is a retirement plan for owners of businesses that are sole-proprietorships or partnerships. Self-directed Keogh plan deposit accounts are insured in the certain retirement account ownership category, along with any other accounts the owner may hold in that category. Keogh plan deposit accounts managed by a plan administrator for multiple participants are insured in the employee benefit plan account ownership category.

Living Trust: A formal revocable trust created for estate planning purposes in which the owner (grantor) retains control over the funds during his or her lifetime, but also identifies beneficiaries who will receive trust assets upon the owner’s death. Formal revocable trust accounts are a separate account ownership category, which also includes informal revocable trust accounts such as payable on death, in trust for, testamentary or Totten trust accounts. Also called Family Trusts.

Low-interest NOW Account: A Negotiable Order of Withdrawal account that cannot earn more than 0.5% interest. See also NOW Account.

Money Market Deposit Account (MMDA): A savings account that allows the owner to make a limited number of transactions each month. Since it is a deposit account, an MMDA is subject to FDIC insurance coverage. An MMDA is a deposit type, not an ownership category. The amount of FDIC insurance coverage available to the owner of an MMDA account depends on the ownership category (single, joint, trust, etc.,) in which the MMDA account is held.

Mortgage Servicing Account: An account into which a mortgage servicer deposits payments from multiple borrowers. The payments from each borrower are usually composed of a Principal & Interest (P&I) portion, and a Taxes & Insurance (T&I) portion. The P&I portion of the account is insured up to $250,000 per borrower, separately from any deposits the borrower may also hold at the same bank. The T&I portion from each borrower, however, is added to any other single ownership accounts the borrower may hold at the bank and the combined total insured up to $250,000.

Non-Citizen Coverage: Non-US citizens can have funds protected by FDIC insurance so long as the funds are deposited into an FDIC-insured institution and are within the insurance limits.

Non-Contingent Interest: A participant's share in a trust or employee benefit plan that is determinable without contingencies.

Non-Deposit Investment Products: Investment products that include stocks, bonds, mutual funds, annuities and Treasury investments (bills, notes, and bonds). Because they are not deposits, the FDIC does not insure these investments, even if they were purchased through a bank or one of its affiliates.

Noninterest-Bearing Transaction Account: A transaction account that permits unlimited withdrawals and that cannot earn interest. Under the provisions of the Transaction Account Guarantee Program (TAGP) this also includes Low-interest NOW accounts and IOLTA accounts. Also called noninterest-bearing checking accounts and Demand Deposit Accounts (DDAs).

NOW Account: Negotiable Order of Withdrawal account. A checking account in which the institution reserves the right to impose a waiting period of at least 7 days before releasing funds. See also Low-interest NOW Account.

Ownership Category: A specific form of account ownership as set forth in the FDIC deposit insurance regulations. When the requirements for each ownership category are met, the deposits held in that ownership receive separate FDIC insurance coverage. The most common ownership categories are: single; certain retirement; joint; revocable trust; irrevocable trust; employee benefit plan; corporation, partnership and unincorporated association; and public unit. Also called Account Category.

Partnership: An association of two or more persons or entities formed to carry on, as co-owners, an unincorporated business for profit. Partnership accounts are a separate account ownership category which also includes corporation accounts and unincorporated association accounts.

Pass-Through Coverage: Deposit insurance coverage that is provided for the interest of each participant in an employee benefit plan.

Payable on Death Account (POD): Term used for informal revocable trust accounts to evidence the owner’s intention that the deposit account is payable to the named beneficiaries upon the death of the owner. Terms and acronyms representing the same intention are in trust for (ITF) and as trustee for (ATF). POD/ITF/ATF accounts are also called testamentary or Totten trust accounts and are insured in the revocable trust account category, along with formal revocable trust accounts.

Power of Attorney: A written statement identifying a person as the agent for another with powers stated in the document. Full power may be granted, or the authority may be limited to certain functions, such as making deposits and withdrawals from a checking account. The statement must be executed before a notary and the signature of the agent is then placed on file with the bank.

Public Unit Account: An account established by an official custodian containing funds of a public unit or political subdivision. Public Unit Accounts are a separate account ownership category.Also called Government Accounts.

Revocable Trust Account: A deposit account held in the name of either an informal or formal trust created for estate planning purposes in which the owner (grantor) retains control over the funds during his or her lifetime but also identifies beneficiaries who will receive trust assets upon his or her death. Revocable trust accounts, both formal and informal, are a separate account ownership category. Also called POD accounts, ITF accounts, Living Trust Accounts and Family Trust Accounts.

Safe Deposit Box: Secure storage provided by some banks for customers. Since they are not deposits, the contents of a safe deposit box are not insured by the FDIC.

Section 457 Plan Account: A deposit held under a deferred compensation plan for state employees. Section 457 plan deposits for a particular individual/state employee are eligible for coverage up to $250,000 in the certain retirement account category, regardless of whether the specific plan is self-directed.

Self-directed Plan: This term means that the participants in the particular retirement plan have the right to direct the investment of assets maintained on their behalf by the plan. For deposit insurance purposes, the participant must be able to direct funds to a specific FDIC-insured institution. The definition of self-directed relates to the requirement for FDIC insurance coverage of certain retirement accounts.

Single Account: An account in the name of one individual with no named beneficiaries. Single accounts are a separate account ownership category. Also called Individual Accounts.

Sole Proprietorship: An unincorporated business in which all assets are owned by one person. Owners of sole proprietorships may use their own social security number on the account. It is important to determine if a business account is held by a sole proprietorship or an incorporated business because incorporated businesses are insured in a category separate from single accounts. Sole Proprietorship accounts are insured in the single account category as the personal deposits of the owner. The phrase Doing Business As (DBA) in the account title usually signifies that the account is held by a sole proprietorship.

Testamentary Account: Account: An informal revocable trust account in which the account title indicates that the deposits are payable to the named beneficiaries upon the account owner’s (or owners’) death. These accounts are also known as Totten trusts, POD accounts and ITF accounts. Revocable trusts, both formal and informal, are a separate ownership category.

Treasury Security: A type of non-deposit investment product.

Unincorporated Association: An association of two or more persons formed for some religious, educational, charitable, social or other non-commercial purpose. Unincorporated association accounts are a separate account ownership category which also includes corporations and partnerships.

Uninsured Deposit: The portion of an accountholder’s deposit account(s) that exceeds the applicable FDIC insurance limit. Depositors with uninsured funds may recover some portion of this amount upon the liquidation of the failed bank assets.