The FDIC does not cover business accounts?

Answer:

Bank deposits owned by corporations, partnerships, limited liability companies (LLC) and enterprises without forming a legal entity, including commercial and non-profit organizations, accounts FDIC insured. Eligible business accounts from the Federal Corporation on insurance of deposits (FDIC) are current accounts, savings accounts, Deposit accounts, money market, certificates of Deposit (CDs), cashier checks, money orders and other items issued by banks covered by the FDIC.

The requirements for FDIC coverage of business accounts

There are two requirements for a business account to qualify for FDIC coverage.

  • Corporation, partnership, LLC or unincorporated business organization making a Deposit shall be organized in accordance with applicable state law. Deposits of individual entrepreneurs, revocable trusts, or public entities not considered business accounts.
  • The main objective of Corporation, partnership, LLC or unincorporated business organization of any Deposit shall be other than the increase in the sum insured by the FDIC.
  • The details of the FDIC coverage of business accounts

    The total amount of deposits in the relevant business accounts from the Corporation, partnership, LLC or unincorporated organization in the Bank to $250,000. For example, if a Corporation has a Bank account with $150,000 and a CD for another $150,000 in the same Bank, the FDIC insures only worth$ 250,000, not the remaining 50,000$. Corporations will be forced to pay the remaining sum of $50,000 to another Bank for these funds to be eligible for FDIC coverage.

    Deposits in personal accounts of owners and representatives of Corporation, partnership, LLC or unincorporated organization in the same Bank are not used to calculate the total volume of deposits of corporate account.

    Use the estimator tool to calculate the FDIC coverage of your business accounts into an FDIC-insured Bank.

    (For associated reading, see are Your Bank deposits insured?)

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