FDIC Insurance for Retail Customers

FDIC coverage increased to $250,000 permanently

The current standard maximum deposit insurance amount has been permanently increased to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit. FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities.

The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. (For details on the requirements, go to www.fdic.gov/deposit/deposits.)

To help you understand some of the changes in FDIC insurance, and to determine whether your deposits are fully protected:

• Speak to a Financial Services Representative at any First Horizon Bank location.
• Visit www.fdic.gov. Updated brochures on deposit insurance coverage (including the basic guide, Deposit Insurance Summary, and the more comprehensive guide, Your Insured Deposits) and a new version of the "Electronic Deposit Insurance Estimator" (EDIE), an interactive service that allows consumers to quickly and easily check whether their accounts are fully protected, are now available on the FDIC's website.
• Call 877-ASK-FDIC (877-275-3342), the FDIC's toll-free consumer assistance line. Help and information about deposit insurance and other matters of interest to bank customers are available Monday through Friday from 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 800-925-4618.

FDIC insurance changes for 2024

Simplification of Deposit Insurance Coverage Rules for Trusts

Effective April 1, 2024, the FDIC amended its regulations to simplify deposit insurance for trust accounts. Coverage for deposits in the trust ownership category include revocable trust accounts (including formal written trusts and informal trusts, where an account owner designates a payable on death (POD) beneficiary on a signature card) and irrevocable trust accounts. For most trust depositors (those with less than $1,250,000), the FDIC expects the coverage levels to be unchanged. However, the new rule may reduce coverage for those depositors who have placed more than $1,250,000 per owner in trust deposits at one insured institution.

Changes to the Mortgage Servicing Account Rule

Deposit accounts maintained by mortgage servicers in an agency, custodial, or fiduciary capacity, for the purpose of payment of a borrower’s principal and interest obligations, are now insured for the cumulative balance paid into the account in order to satisfy principal and interest obligations of the lender, whether paid directly by the borrower or by another party, up to the limit of $250,000 per mortgagor.

To learn more about the new changes, visit www.fdic.gov.

FDIC insurance changes for 2013

By operation of federal law, beginning January 1, 2013, funds deposited in a non-interest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all non-interest-bearing transaction accounts, are insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.