|
|
Ownership Categories
Single Accounts
A single account is a deposit owned by one person. The following deposit account types are included in this ownership category:
- Accounts held in one person's name alone
- 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
- Accounts held in the name of a business that is a sole proprietorship (for example, a "DBA account")
- Accounts established for a decedent's estate, and
- Any account that fails to qualify for coverage under another ownership category.
All single accounts owned by the same person at the same insured bank are
added together and the total is insured up to $250,000.
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:
- the other signer is authorized to make withdrawals pursuant to a Power of Attorney, or
- the account is owned by one person and the other person is authorized to withdraw deposits on the owner's behalf (for example, 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.
| Account Title |
Deposit Type |
Account Balance |
| Marci Jones |
NOW |
$
15,000
|
| Marci Jones |
Savings |
20,000 |
| Marci Jones |
CD |
200,000
|
| Marci’s Memories (a sole proprietorship) |
Checking |
25,000 |
| Total Deposits |
|
260,000
|
| Amount Insured |
|
250,000
|
| Amount Uninsured |
|
$
10,000
|
Explanation:
Marci Jones has four single accounts at the same insured bank: three accounts
held in her name alone and one account held by her business, which is a
sole proprietorship. Deposits owned by a sole proprietorship are insured
as the
single ownership deposits of the person who owns the business. Thus, the
deposits in all of these accounts are added together and the total balance,
$260,000,
is insured for $250,000, leaving $10,000 uninsured.
|
