Covering Your Assets: Part 1 – FDIC

In light of recent events, many of our clients have asked the question of how their assets are covered. While the topic is nuanced, we wanted to provide you with some information regarding the two types of insurance: FDIC (Federal Deposit Insurance Corporation) and SIPC (Securities Investor Protection Corporation).

FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.

Deposit Products

The following are examples of deposit products which are insured by the FDIC*
  • Checking accounts
  • Savings accounts
  • Money market deposit accounts
  • Certificates of deposit (CD)
  • Prepaid cards (assuming certain FDIC requirements are met)

*The amount of FDIC Insurance coverage you may be entitled to depends on the registration of the account. Below are examples of some of the registrations and how they are covered.

**The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, and money market funds, even if these investments were bought from an insured bank. We will send out an email next week that will cover SIPC insurance and how it works with FDIC to cover your investments.

Individual Accounts

  • All single accounts owned by the same person at the same bank are added together and insured up to $250,000.

Joint Accounts

  • Each co-owner’s shares of every joint account at the same insured bank are added together and insured up to $250,000. For example, a joint account with 2 owners would be insured for up to $500,000.00

Trust Accounts

  • All revocable trusts owned by the same person at the same bank are added together, and the owner is insured up to $250,000 per beneficiary.
  • Irrevocable trusts typically have contingent interests which result in the trust being insured for a maximum of $250,000, regardless of the number of beneficiaries designated. However, the non-contingent interests of a beneficiary in all irrevocable trusts established by the same owner and held at the same bank are added together and insured up to $250,000.

Pension Plan Accounts

  • The interests of each participant’s non-contingent interest under the plan is insured up to $250,000 per bank. For plans where the interests are contingent, such as health and welfare plans, the coverage is $250,000 for the plan itself.

Corporate Accounts

  • All deposits owned by a corporation, partnership, or unincorporated association at the same bank are added together and insured up to $250,000, separately from the personal accounts of the owners or members.

Learn More

Covering Your Assets: Part 2 – SIPC
Coming Next Thursday, 4/27/23

Market Update

Earnings season is underway as companies continue to shed light on how they are faring in this high interest-rate environment. The results have been interesting, to say the least. While some companies have exceeded expectations with their results, others have experienced a decline in revenue or profit margins. In general, the results seem to be better than what investors predicted. We can expect to gain more insight into the overall trend for the earnings season next week, as a significant proportion of S&P companies will be reporting. For the week, the S&P 500, Dow Jones Industrial Average, and Nasdaq are all down 0.38%, 0.69%, and 0.88%, respectively, as of today’s close.

Upcoming Webinar

Our next webinar is on “Cybersecurity and Data Protection” with Erin Donham, Senior Technology Consultant at Charles Schwab, and Joshua Garland, ChFC®, AIF®. It will take place next Wednesday, April 26, 2023 at 1pm PDT. Click here to register and learn more.

Have a wonderful week,

Rhonda Ducote, AIF®






Advisory services offered by Apriem Advisors (“Apriem”), a registered investment adviser with the United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940. Any reference to or use of the terms “registered investment adviser” or “registered,” does not imply that Apriem Advisors or any person associated with Apriem Advisors has achieved a certain level of skill or training. Apriem Advisors may only transact business or render personalized investment advice in those states and international jurisdictions where we are registered, notice filed, or where we qualify for an exemption or exclusion from registration requirements. For complete information about our firm, please refer to our Form ADV Part 2A, 2B and CRS at any time.

The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. Past performance is no guarantee of future results. The reader should not assume that investments in the securities identified were or will be profitable.”

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