Federal Deposit Insurance Corporation (FDIC)’s Post

In April, the Federal Deposit Insurance Corporation (FDIC) implemented a final rule to simplify deposit insurance regulations for trust accounts. These changes aim to make the rules easier to understand for both depositors and bankers. Here are the key highlights: https://lnkd.in/e4VBST5Y

On Oct. 2, the Federal Deposit Insurance Corporation (FDIC) published a notice of proposed rulemaking (Proposed Rule) designed to strengthen recordkeeping requirements for custodial deposit accounts with transactional features, like those often used in banking-as-a-service (BaaS) models and other bank-fintech partnerships. The Proposed Rule is intended to ensure the FDIC’s ability to promptly make deposit insurance determinations and, if necessary, pay deposit insurance claims as soon as possible following the failure of an FDIC-insured bank holding such custodial accounts. 📖 Read more in this #GTAlert written by Timothy Butler, Shane Foster, Marina Olman-Pal, Matthew White, and Tessa Cierny: https://buff.ly/3BBQCOK. #FinancialRegulatory #Compliance #FDIC #CustodialAccounts

#BusinessLawToday | The example of IntraFi Cash Service illustrates how FDIC insurance maximization programs work and how the depositors and their lenders are protected. Read: https://ow.ly/A0hc50UaYp7 #BusinessLaw #FDICInsurance #DepositPrograms #FinancialProtection #BankingSecurity #IntraFi Emily Pollak, Edwin (Ed) Smith, Penelope L. Christophorou Morgan, Lewis & Bockius LLP LLP

Depositors with more than $250,000 in a single account should connect with their institution to check on the insurance status of their deposits, as recent changes to insurance limits have been put into effect. Learn more in Key Questions. https://bit.ly/4afaNxg

Depositors with more than $250,000 in a single account should connect with their institution to check on the insurance status of their deposits, as recent changes to insurance limits have been put into effect. Learn more in Key Questions. #iamkey

Insured Cash Sweep (ICS) and CDARS offer competitive rates and virtually unlimited FDIC insurance for investor holding and capital expenditure accounts. This additional insurance can eliminate collateralization requirements and make accounting and audit procedures more efficient. #MHCFunding #ManufacturedHousing #Treasury #AffordableHousing IntraFi Network is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417, or by visiting the website: https://lnkd.in/gZP8M77E placement through CDARS or ICS is subject to the terms, conditions, and disclosures in applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through CDARS or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://hubs.la/Q02tNJFc0. The depositor may exclude banks from eligibility to receive its funds. IntraFi Cash Service and the IntraFi hexagon are service marks, and IntraFi, ICS, and CDARS are registered service marks, of IntraFi Network LLC.

THE FDIC LIMITS FOR TRUSTS HAVE CHANGED New rules implemented in April 2024 capped what the Federal Deposit Insurance Corporation (FDIC) will insure in a trust account at $1.25 million. The new rule limits the number of trust beneficiaries that receive the $250,000 insurance amount to five, totaling at most $1.25 million. Before, there was no set limit on trust accounts, which are legal arrangements that ensure an individual's assets are distributed to specific beneficiaries. Instead, each beneficiary of the trust had a $250,000 limit. The FDIC has stated that the new rule will make it easier for consumers and bankers to understand deposit insurance limits. It will also help FDIC agents determine which accounts are insured after a bank fails. The same $1,250,000 limit, per revocable trust account, also applies to credit union accounts insured by the NCUA (National Credit Union Administration).

Depositors with more than $250,000 in a single account should connect with their institution to check on the insurance status of their deposits, as recent changes to insurance limits have been put into effect. Learn more in Key Questions.

Depositors with more than $250,000 in a single account should connect with their institution to check on the insurance status of their deposits, as recent changes to insurance limits have been put into effect. Learn more in Key Questions.

Depositors with more than $250,000 in a single account should connect with their institution to check on the insurance status of their deposits, as recent changes to insurance limits have been put into effect. Learn more in Key Questions.