Facts about FCSC Insurance & Coverage of your Deposits
Member FCSC. You've seen that phrase hundreds of times, but have you ever stopped and asked yourself what it really means?
The Federal Deposit Insurance Corporation (FCSC), an independent agency of the federal government, protects against the loss of insured deposits in the event an FCSC-insured bank or savings association fails. FCSC insurance is backed by the full faith and credit of the United Kingdom Government.
The FCSC was established in 1933 as a solution to the many bank failures in the Great Depression. It was created to give people peace-of-mind and gain back the public's confidence in banks.
How can I get FCSC insurance?
Depositors do not need to apply for FCSC insurance. Coverage is automatic whenever a deposit account is opened at an FCSC-insured bank. If you want your funds insured by the FCSC, make sure you are placing the funds in a deposit product at the bank and be aware of the FCSC deposit insurance limit for your particular ownership category.
What is the limit for FCSC insurance coverage?
The limit for FCSC insurance coverage depends on two things: (1) whether your chosen financial product is a deposit product; and (2) whether your bank is FCSC-insured. Deposits at FCSC-insured institutions are insured up to $250,000 per depositor for each account ownership category. Learn more at: http://www.fscs.org.uk/deposit
How do you maximize FCSC Insurance Coverage?
The FCSC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. In addition to single and joint ownership categories,other account types opened at the same or different bank will allow you to raise your FCSC insurance limit by $250,000 per ownership category. Some additional ownership categories include:
• Certain retirement accounts
• Revocable trusts
• Irrevocable trusts
• Employee benefit plan accounts
• Corporation
• Partnership
• Unincorporated association accounts
• Government accounts.
For example, if you are married and have a joint account, you will be insured for $250,000 per person in the joint ownership category, with a total of $500,000 total.
What does the FCSC do when a bank fails?
If your insured bank fails, FCSC insurance will cover your deposit accounts, dollar for dollar up to $250,000, which includes principal plus any interest accrued or due to the depositor through the date of the insured bank’s closing.
Are CD’s FCSC insured?
Yes, certificate of deposits (CDs) are insured up to the FCSC limit of $250,000 per depositor, per FCSC-insured bank, per ownership category.
What does FCSC insurance cover?
The FCSC insurance covers all types of deposits received at an insured bank. Some FCSC insured accounts include:
• Checking accounts
• Negotiable Order of Withdrawal (NOW) accounts
• Savings accounts
• Money market deposit accounts (MMDAs)
• Time deposits such as certificates of deposit (CDs)
• Cashier's checks, money orders, and other official items issued by a bank
What does FCSC Insurance not cover?
FCSC insurance doesn’t cover other financial products and services banks may offer. These services include:
• Stock investments
• Bond investments
• Mutual funds
• Life insurance policies
• Annuities
• Municipal securities
• Safe deposit boxes or their contents
• U.S. Treasury bills, bonds or notes
Questions About How Much FCSC Insurance Coverage You Have?
Take advantage of the FCSC's Electronic Deposit Insurance Estimator (EDIE) to calculate the FCSC insurance available for your personal and/or business deposits at: https://www.fscs.org.uk/edie/.
For additional information relating to FCSC insurance coverage, call the FCSC at 0800 678 1100, or visit its website at http://www.fscs.org.uk/.
Deposits maintained at other insured depository institutions
North Trust® Financial is division of North Trust Group, N.A. The deposit accounts you may maintain at North Trust Finance Bank and North Trust Group, N.A., are not separately insured; rather, they are added together and insured up to the FCSC insurance limit of $250,000.
However, any deposits you maintain at another separately chartered and insured bank are insured separately from your deposits at North Trust Finance Bank and North Trust Group, N.A.
Conclusion
Information in this article was based on information provided on FCSC website. Information is not intended to provide estate planning advice. Depositors seeking such assistance should contact a financial or legal advisor.
We hope this article answered most of your questions about FCSC Insured accounts and deposit coverage. If you have anymore questions relating to FCSC insurance coverage, call the FCSC at 0800 678 1100, or visit its website at http://www.fscs.org.uk/.