PART 330—DEPOSIT INSURANCE COVERAGE Authority: 12 U.S.C. 1813( l Source: 63 FR 25756, May 11, 1998, unless otherwise noted. § 330.1 Definitions. For the purposes of this part: (a) Act et seq. (b) Corporation (c) Default (d) Deposit (e) Deposit account records (f) FDIC (g) Independent activity. (h) Insured branch (i) Insured deposit (j) Insured depository institution (k) Interest, (l) Natural person (m) [Reserved] (n) Sole proprietorship (o) Standard maximum deposit insurance amount, (p) Trust estate (q) Trust funds (r)-(s) [Reserved] [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. 23, 2006; 73 FR 61660, Oct. 17, 2008; 74 FR 47716, Sept. 17, 2009; 75 FR 49365, Aug. 13, 2010; 75 FR 69583, Nov. 15, 2010; 76 FR 4816, Jan. 27, 2011; 76 FR 41395, July 14, 2011; 78 FR 56588, Sept. 13, 2013; 80 FR 65921, Oct. 28, 2015; 87 FR 4470, Jan. 28, 2022] § 330.2 Purpose. The purpose of this part is to clarify the rules and define the terms necessary to afford deposit insurance coverage under the Act and provide rules for the recognition of deposit ownership in various circumstances. § 330.3 General principles. (a) Ownership rights and capacities. (b) Deposits maintained in separate insured depository institutions or in separate branches of the same insured depository institution. The deposit accounts of a depositor maintained in the same right and capacity at different branches or offices of the same insured depository institution are not separately insured; rather they shall be added together and insured in accordance with this part. (c) Deposits maintained by foreigners and deposits denominated in foreign currency. (d) Deposits in insured branches of foreign banks. (e) Deposits payable outside of the United States and certain other locations. (2) Except as provided in paragraph (e)(3) of this section, any obligation of an insured depository institution which is carried on the books and records of an office of that institution located outside any State, as referred to in paragraph (e)(1) of this section, shall not be an insured deposit for purposes of this part, or any other provision of this part, notwithstanding that the obligation may also be payable at an office of that institution located within any State. (3) Rule of construction. (i) Overseas Military Banking Facilities operated under U.S. Department of Defense regulations, 32 CFR parts 230 and 231; and (ii) Branches of U.S.-insured depository institutions in the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau. (f) International banking facility deposits. (g) Bank investment contracts. (h) Application of state or local law to deposit insurance determinations. (i) Determination of the amount of a deposit General rule. (2) Discounted certificates of deposit. (3) Waiver of minimum requirements. (j) Continuation of insurance coverage following the death of a deposit owner. [63 FR 25756, May 11, 1998, as amended at 64 FR 15656, Apr. 1, 1999; 78 FR 56589, Sept. 13, 2013; 89 FR 65170, Aug. 9, 2024; 91 FR 13705, Mar. 23, 2026] § 330.4 Continuation of separate deposit insurance after merger of insured depository institutions. Whenever the liabilities of one or more insured depository institutions for deposits are assumed by another insured depository institution, whether by merger, consolidation, other statutory assumption or contract: (a) The insured status of the institutions whose liabilities have been assumed terminates on the date of receipt by the FDIC of satisfactory evidence of the assumption; and (b) The separate insurance of deposits assumed continues for six months from the date the assumption takes effect or, in the case of a time deposit, the earliest maturity date after the six-month period. In the case of time deposits which mature within six months of the date the deposits are assumed and which are renewed at the same dollar amount (either with or without accrued interest having been added to the principal amount) and for the same term as the original deposit, the separate insurance applies to the renewed deposits until the first maturity date after the six-month period. Time deposits that mature within six months of the deposit assumption and that are renewed on any other basis, or that are not renewed and thereby become demand deposits, are separately insured only until the end of the six-month period. § 330.5 Recognition of deposit ownership and fiduciary relationships. (a) Recognition of deposit ownership Evidence of deposit ownership. (2) Recognition of deposit ownership in custodial accounts. (b) Fiduciary relationships Recognition. (2) Details of fiduciary relationships. (3) Multi-tiered fiduciary relationships. (i) One method is to: (A) Expressly indicate, on the deposit account records of the insured depository institution, the existence of each and every level of fiduciary relationships; and (B) Disclose, at each level, the name(s) and interest(s) of the person(s) on whose behalf the party at that level is acting. (ii) An alternative method is to: (A) Expressly indicate, on the deposit account records of the insured depository institution, that there are multiple levels of fiduciary relationships; (B) Disclose the existence of additional levels of fiduciary relationships in records, maintained in good faith and in the regular course of business, by parties at subsequent levels; and (C) Disclose, at each of the levels, the name(s) and interest(s) of the person(s) on whose behalf the party at that level is acting. No person or entity in the chain of parties will be permitted to claim that they are acting in a fiduciary capacity for others unless the possible existence of such a relationship is revealed at some previous level in the chain. (4) Exceptions Deposits evidenced by negotiable instruments. (ii) Deposit obligations for payment of items forwarded for collection by depository institution acting as agent. [63 FR 25756, May 11, 1998, as amended at 64 FR 15656, Apr. 1, 1999] § 330.6 Single ownership accounts. (a) Individual accounts. (b) Sole proprietorship accounts. (c) Single-name accounts containing community property funds. (d) Accounts of a decedent and accounts held by executors or administrators of a decedent's estate. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. 23, 2006; 76 FR 41395, July 14, 2011] § 330.7 Accounts held by an agent, nominee, guardian, custodian or conservator. (a) Agency or nominee accounts. (b) Guardian, custodian or conservator accounts. (c) Accounts held by fiduciaries on behalf of two or more persons. (d) Mortgage servicing accounts. (e) Custodian accounts for American Indians. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. 23, 2006; 73 FR 61660, Oct. 17, 2008; 74 FR 47716, Sept. 17, 2009; ; 87 FR 4470, Jan. 28, 2022] § 330.8 Annuity contract accounts. (a) Funds held by an insurance company or other corporation in a deposit account for the sole purpose of funding life insurance or annuity contracts and any benefits incidental to such contracts, shall be insured separately in the amount of up to the SMDIA per annuitant, provided that, pursuant to a state statute: (1) The corporation establishes a separate account for such funds; (2) The account cannot be charged with the liabilities arising out of any other business of the corporation; and (3) The account cannot be invaded by other creditors of the corporation in the event that the corporation becomes insolvent and its assets are liquidated. (b) Such insurance coverage shall be separate from the insurance provided for any other accounts maintained by the corporation or the annuitants at the same insured depository institution. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. 23, 2006] § 330.9 Joint ownership accounts. (a) Separate insurance coverage. (b) Determination of insurance coverage. (c) Qualifying joint accounts Qualification requirements. (i) All co-owners of the funds in the account are “natural persons” (as defined in § 330.1(l)); (ii) Each co-owner has personally signed, which may include signing electronically, a deposit account signature card, or the alternative method provided in paragraph (c)(4) of this section is satisfied; and (iii) Each co-owner possesses withdrawal rights on the same basis. (2) Limited exceptions. (3) Evidence of deposit ownership. (4) Alternative method to satisfy signature-card requirement. (d) Nonqualifying joint accounts. (e) Determination of interests. [63 FR 25756, May 11, 1998, as amended at 64 FR 15656, Apr. 1, 1999; 64 FR 62102, Nov. 16, 1999; 71 FR 14631, Mar. 23, 2006; 74 FR 47716, Sept. 17, 2009; 76 FR 41395, July 14, 2011; 84 FR 35027, July 22, 2019] § 330.10 Trust accounts. (a) Scope and definitions. (1) Informal revocable trust (2) Formal revocable trust (3) Irrevocable trust (b) Calculation of coverage General calculation. (2) Aggregation for purposes of insurance limit. (3) Separate insurance coverage. (4) Equal allocation presumed. (c) Number of beneficiaries. (1) Eligible beneficiaries. (2) Ineligible beneficiaries. (i) The grantor of a trust; or (ii) A person or entity that would only obtain an interest in the deposit if one or more identified beneficiaries are deceased. (3) Future trust(s) named as beneficiaries. (4) Informal trust account payable to depositor's formal trust. (d) Deposit account records Informal revocable trusts. (2) Formal revocable trusts. (e) Commingled deposits of bankruptcy trustees. (f) Deposits excluded from coverage under this section Revocable trust co-owners that are sole beneficiaries of a trust. (2) Employee benefit plan deposits. (3) Investment company deposits. (4) Insured depository institution as trustee of an irrevocable trust. [87 FR 4470, Jan. 28, 2022] § 330.11 Accounts of a corporation, partnership or unincorporated association. (a) Corporate accounts. (2) Notwithstanding any other provision of this part, any trust or other business arrangement which has filed or is required to file a registration statement with the Securities and Exchange Commission pursuant to section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8) or that would be required so to register but for the fact it is not created under the laws of the United States or a state or but for sections 2(b), 3(c)(1), or 6(a)(1) of that act shall be deemed to be a corporation for purposes of determining deposit insurance coverage. An exception to this paragraph (a)(2) shall exist for any trust or other business arrangement established by a state or that is a state agency or state public instrumentality as part of a qualified tuition savings program under section 529 of the Internal Revenue Code (26 U.S.C. 529). A deposit account of such a trust or business arrangement shall not be deemed to be the deposit of a corporation provided that: The funds in the account may be traced to one or more particular investors or participants; and the existence of the trust relationships is disclosed in accordance with the requirements of § 330.5. If these conditions are satisfied, each participant's funds shall be insured as a deposit account of the participant. (b) Partnership accounts. (c) Unincorporated association accounts. (d) Non-qualifying entities. [63 FR 25756, May 11, 1998, as amended at 70 FR 33692, June 9, 2005; 70 FR 62059, Oct. 28, 2005; 71 FR 14631, Mar. 23, 2006] § 330.12 Accounts held by a depository institution as the trustee of an irrevocable trust. (a) Separate insurance coverage. (b) Determination of interests. (1) Allocated funds of a trust estate. (2) Interest of a trust estate in unallocated trust funds. (c) Limitation on applicability. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. 23, 2006; 76 FR 41395, July 14, 2011] § 330.13 [Reserved] § 330.14 Retirement and other employee benefit plan accounts. (a) “Pass-through” insurance. Any deposits of an employee benefit plan in an insured depository institution shall be insured on a “pass-through” basis, in the amount of up to the SMDIA for the non-contingent interest of each plan participant, provided the rules in § 330.5 are satisfied. Deposits eligible for coverage under paragraph (b)(2) of this section that also are deposits of a employee benefit plan or deposits of an deferred compensation plan described in section 457 of the Internal Revenue Code of 1986 (26 U.S.C. 457) in an insured depository institution shall be insured on a “pass-through” basis in the amount of $250,000 for the non-contingent interest of each plan participant, provided the rules in § 330.5 are satisfied. (b) Aggregation Multiple plans. (2) Certain retirement accounts. Deposits in an insured depository institution made in connection with the following types of retirement plans shall be aggregated and insured in the amount of up to $250,000 per participant: (i) Any individual retirement account described in section 408(a) of the Internal Revenue Code of 1986 (26 U.S.C. 408(a)): (ii) Any eligible deferred compensation plan described in section 457 of the Internal Revenue Code of 1986 (26 U.S.C. 457); and (iii) Any individual account plan defined in section 3(34) of the Employee Retirement Income Security Act (ERISA) (29 U.S.C. 1002) and any plan described in section 401(d) of the Internal Revenue Code of 1986 (26 U.S.C. 401(d)), to the extent that participants and beneficiaries under such plans have the right to direct the investment of assets held in individual accounts maintained on their behalf by the plans. (c) Determination of interests Defined contribution plans. (2) Defined benefit plans. (3) Amounts taken into account. (d) Treatment of contingent interests. (e) Overfunded pension plan deposits. (f) Definitions of “depositor”, “employee benefit plan”, “employee organization” and “non-contingent interest”. (1) The term depositor (2) The term employee benefit plan (3) The term employee organization (4) The term non-contingent interest [63 FR 25756, May 11, 1998, as amended at 64 FR 15657, Apr. 1, 1999; 71 FR 14631, Mar. 23, 2006; 71 FR 53550, Sept. 12, 2006] § 330.15 Accounts held by government depositors. (a) Extent of insurance coverage Accounts of the United States. (i) Up to the SMDIA in the aggregate for all time and savings deposits; and (ii) Up to the SMDIA in the aggregate for all demand deposits. (2) Accounts of a state, county, municipality or political subdivision. (A) Up to the SMDIA in the aggregate for all time and savings deposits; and (B) Up to the SMDIA in the aggregate for all demand deposits. (ii) In addition, each such official custodian depositing such funds in an insured depository institution outside of the state comprising the public unit or wherein the public unit is located, shall be insured in the amount of up to the SMDIA in the aggregate for all deposits, regardless of whether they are time, savings or demand deposits. (3) Accounts of the District of Columbia. (A) Up to the SMDIA in the aggregate for all time and savings deposits; and (B) Up to the SMDIA in the aggregate for all demand deposits. (ii) In addition, each such official custodian depositing such funds in an insured depository institution outside of the District of Columbia shall be insured in the amount of up to the SMDIA in the aggregate for all deposits, regardless of whether they are time, savings or demand deposits. (4) Accounts of the Commonwealth of Puerto Rico and other government possessions and territories. (A) Up to the SMDIA in the aggregate for all time and savings deposits; and (B) Up to the SMDIA in the aggregate for all demand deposits. (ii) In addition, each such official custodian depositing such funds in an insured depository institution outside of the commonwealth, possession or territory comprising the public unit or wherein the public unit is located, shall be insured in the amount of up to the SMDIA in the aggregate for all deposits, regardless of whether they are time, savings or demand deposits. (5) Accounts of an Indian tribe. (i) Up to the SMDIA in the aggregate for all time and savings deposits; and (ii) Up to the SMDIA in the aggregate for all demand deposits. (b) Rules relating to the “official custodian” Qualifications for an “official custodian”. (2) Official custodian of the funds of more than one public unit. (3) Split of authority or control over public unit funds. (c) Public bond issues. (d) Definition of “political subdivision”. (1) The creation of which subdivision or department has been expressly authorized by the law of such public unit; (2) To which some functions of government have been delegated by such law; and (3) Which is empowered to exercise exclusive control over funds for its exclusive use. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. 23, 2006] § 330.16 [Reserved] § 330.101 Premiums. This interpretive rule describes certain payments that are not deemed to be “interest” as defined in § 330.1(k). (a) Premiums, whether in the form of merchandise, credit, or cash, given by a bank to the holder of a deposit will not be regarded as “interest” as defined in § 330.1(k) if: (1) The premium is given to the depositor only at the time of the opening of a new account or an addition to an existing account; (2) No more than two premiums per deposit are given in any twelve-month interval; and (3) The value of the premium (in the case of merchandise, the total cost to the bank, including shipping, warehousing, packaging, and handling costs) does not exceed $10 for a deposit of less than $5,000 or $20 for a deposit of $5,000 or more. (b) The costs of premiums may not be averaged. (c) A bank may not solicit funds for deposit on the basis that the bank will divide the funds into several accounts for the purpose of enabling the bank to pay the depositor more than two premiums within a twelve-month interval on the solicited funds. (d) The bank must retain sufficient information for examiners to determine that the requirements of this section have been satisfied. (e) Notwithstanding paragraph (a) of this section, any premium that is not, directly or indirectly, related to or dependent on the balance in a demand deposit account and the duration of the account balance shall not be considered the payment of interest on a demand deposit account and shall not be subject to the limitations in paragraph (a) of this section. [76 FR 41395, July 14, 2011]