06 Feb How much FDIC protection will my account have?

Q. I have a question about the $250,000 FDIC insurance. I made a new account payable on death (POD). I asked one bank if the money exceeds $250,000, could I lose the money over that amount. One bank said no, if you have two beneficiaries, you are covered by the number of people associated with the account (i.e., me and my two “kiddies”) so the account is covered by $250,000 times three. Another bank said that is incorrect. It stays at $250K whether or not there are PODs. I actually called the FDIC and the guy there said the first answer was correct, $250,000 times the number of PODs plus account holder. He even sent me a booklet saying the same. The second bank was adamant they were both wrong and said $250,000 only. Who is right?
— Annoyed and confused

A. Making sure your bank deposits are fully covered by FDIC insurance is important.

A bank disputing the FDIC’s own brochure? That doesn’t sound right.

By way of background the Federal Deposit Insurance Corporation (FDIC) was created in 1933 during the Great Depression and began insuring deposits in early 1934, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.

It became a permanent part of the U.S. financial system with the Banking Act of 1935, she said.

Originally, the insurance coverage was $2,500 per depositor when it first began; over time Congress increased that limit to today’s $250,000 level, she said.

FDIC insurance covers a variety of bank accounts including checking, savings, certificates of deposit, money markets, cashier’s checks and money orders. However, accounts held at brokerage firms and other custodians do not fall under the FDIC. Rather, they are insured by the Securities Investor Protection Corporation (SIPC), she said.

As to your question regarding coverage of payment on death (POD) accounts, Mott shared the information directly from the FDIC website.
FDIC deposit insurance covers $250,000 per depositor, per bank for each account ownership category. Those categories include: single and joint accounts, IRAs and Trusts.

“In the case of the POD account, the assignment of beneficiaries means it is insured like a Trust,” she said. “According to FDIC literature, Trust accounts are insured for each owner or beneficiary up to a maximum of $1.25 million if five or more beneficiaries are named.”

You can get copies of brochures laying out the rules on the FDIC website.

Perhaps the reps from the second bank need some retraining.

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This story was originally published in February 2026. 

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