Ownership Categories
Corporation/Partnership/Unincorporated Association Accounts

Deposits owned by corporations, partnerships, and unincorporated associations, including for-profit and not-for-profit organizations, are insured under the same ownership category. Such deposits are insured separately from the personal deposits of the organization's owners, stockholders, partners or members.

To qualify for insurance coverage under this ownership category, a corporation, partnership or unincorporated association must be engaged in an "independent activity," meaning that the entity is operated primarily for some purpose other than to increase deposit insurance coverage.

All deposits owned by a corporation, partnership, or unincorporated association at the same bank are combined and insured up to the SMDIA, currently $250,000.

Accounts owned by the same corporation, partnership, or unincorporated association but designated for different purposes are not separately insured.

For example: If a corporation has both an operating account and a reserve account at the same bank, the FDIC would add both accounts together and insure the funds up to the SMDIA. Similarly, if a corporation has divisions or units that are not separately incorporated, the FDIC would combine the deposit accounts of those divisions or units with any other deposit accounts of the corporation at the bank and the total would be insured up to $250,000.

The number of partners, members, or account signatories established by a corporation, partnership, or unincorporated association does not affect insurance coverage.

For example: The FDIC insures deposits owned by a homeowners’ association at one insured bank up to $250,000 in total, not $250,000 for each member of the association.

Unincorporated associations typically insured under this category include churches and other religious organizations, community and civic organizations and social clubs.

Important: Accounts held in the name of a sole proprietorship are not insured in this ownership category. Rather, they are insured as the single account deposits of the owner, added to the owner's other single accounts, if any, at the same bank and the total insured up to the SMDIA.