|
Deposit Insurance Coverage
Joint Accounts
Joint Accounts
Accounts held under any form of joint ownership are insured up to $75,000. This insurance is separate from an account held by any of the co-owners as an individual account.
Scenario:
A and B maintain a joint account and in addition, each holds an individual account.
Insurance Coverage:
Each account is separately insured to the $75,000 maximum.
Scenario:
The following accounts are held by A, B and C-:
No. 1 A, as an individual - $75,000
No. 2 B, as an individual - $75,000
No. 3 C, as an individual - $75,000
No. 4 A and B - $75,000
No. 5 A and C - $75,000
No. 6 B and C - $75,000
No. 7 A, B and C - $75,000
Insurance Coverage:
Single Accounts:
|
A |
B |
C |
No. 1 |
$75,000 |
|
|
No. 2 |
|
$75,000 |
|
No. 3 |
|
|
$75,000 |
Each account is fully insured up to the $75,000 maximum.
Joint Account:
Assumption
The interests of the co-owners of each joint account are deemed equal for insurance purposes.
|
A |
|
B |
|
C |
Total |
No. 4 |
$37,500 |
+ |
$37,500 |
|
|
= $75,000 |
No. 5 |
$37,500 |
|
|
+ |
$37,500 |
= $75,000 |
No. 6 |
|
|
$37,500 |
+ |
$37,500 |
= $75,000 |
No. 7 |
$25,000 |
+ |
$25,000 |
+ |
$25,000 |
= $75,000 |
|
$100,000 |
|
$100,000 |
|
$100,000 |
|
Maximum
Coverage: |
$75,000 |
|
$75,000 |
|
$75,000 |
|
Required: Reduce each deemed allocation by 25%.
($25,000 / $100,000 x 100 = 25%)
New Configuration Showing Coverage Allowed:
|
A |
|
B |
|
C |
Total |
No. 4 |
$28,125 |
+ |
$28,125 |
|
|
= $56,250 |
No. 5 |
$28,125 |
|
|
+ |
$28,125 |
= $56,250 |
No. 6 |
|
|
$28,125 |
+ |
$28,125 |
= $56,250 |
No. 7 |
$18,750 |
+ |
$18,750 |
+ |
$18,750 |
= $56,250 |
|
$75,000 |
|
$75,000 |
|
$75,000 |
|
Scenario:
Three joint accounts are owned by A, B and C, as follows-:
No. 1 A and B - $75,000
No. 2 A and B - $30,000
No. 3 A and C - $45,000
Insurance Coverage:
No. 1 A+B
|
$75,000 |
No. 2 A+B |
$30,000 |
|
$105,000 |
Accounts numbered 1 and 2 are owned by the same combination of individuals A and B. These are added together and insured to $75,000 in the aggregate, leaving $30,000 uninsured. Since the respective interests of the co-owners of each joint account are deemed equal for insurance purposes, A has an interest of $37,500 in account No. 1, $15,000 in account No. 2 and $22,500 in account No. 3 for a total joint interest of $75,000.
A’s interest of $52,500 in accounts numbered 1 and 2 receives $37,500 proportionate share of the $75,000 insurance coverage on the two accounts, as does B’s interest, leaving $15,000 uninsured in each case.
A is entitled to $75,000 of insurance on the total of his interests in joint accounts owned by different combinations of individuals.
The proportion of $37,500 of this $75,000 is allocated to A’s interest in accounts numbered 1 and 2, leaving $37,500 of insurance available for his $22,500 interest in account No. 3, which is fully insured. C’s $22,500 interest in account No. 3 is also fully insured.
Thus, $60,000 of A’s total interest of $75,000 is insured; $37,500 of B’s $52,500 interest ($37,500 + $15,000) is insured; and all C’s $22,500 interest is insured. Of the $150,000 invested in the three joint accounts, a total of $120,000 is insured.
|
A |
|
B |
|
C |
|
Total |
Restricted |
$37,500 |
+ |
$37,500 |
|
|
= |
$75,000 |
No. 3 |
$22,500 |
|
|
+ |
$22,500 |
= |
$45,000 |
|
$60,000 |
|
$37,500 |
|
$22,500 |
= |
$120,000 |
top
|
|
