Comments on: How are solely owned corporations classified for FDIC insurance purposes?

Question: How are solely owned corporations classified for FDIC insurance purposes?

sharkfu — Sat, 13 Sep 2008 14:48:19 -0800

FDIC Bank Coverage filter: I am the sole owner and president of a corporation. If I do my personal banking at the same bank as my corporate accounts are both accounts covered by the FDIC insurance or is just one covered as I am technically "one depositor"?

My guess would be that I am one depositor and the corporation is a separate different depositor (which happens to be owned by me) but I wouldn't want to run into a legal snafu if my bank happened to fail and the FDIC saw things differently.

Any insight would be greatly appreciated.

By: lsemel

lsemel — Sat, 13 Sep 2008 15:11:20 -0800

According to the FDIC's website:
"Deposits held in the name of a corporation, partnership or unincorporated association are insured separately from the personal deposits of the owner(s) or officials of the organization"
...
"Example:
The president of a corporation has a personal joint account with her husband at the same bank where the corporation's funds are deposited. The president is an authorized signatory on the corporate account. The joint account with her husband is insured up to $200,000 and the corporation's deposits are separately insured up to $100,000."

By: sharkfu

sharkfu — Sat, 13 Sep 2008 15:23:09 -0800

Thank you for the quick answer, Isemel.