Bank deposits owned by corporations, partnerships, limited liability companies (LLCs) and unincorporated associations, including for-profit and not-for-profit organizations, are FDIC insured accounts. Eligible business accounts for coverage from the Federal Deposit Insurance Corporation (FDIC) are checking accounts, savings accounts, money market deposit accounts, certificates of deposit (CDs), cashier's checks, money orders and other official items issued by banks covered by the FDIC.

Requirements for FDIC Coverage of Business Accounts

There are two requirements for a business account to qualify for FDIC coverage.

  1. The corporation, partnership, LLC or unincorporated organization making the deposit has to be organized under applicable state law. Deposits made by sole proprietorships, revocable trusts or government entities are not considered to be business accounts.
  2. The main purpose of operation of the corporation, partnership, LLC or unincorporated organization making the deposit has to be other than to increase deposit insurance coverage by the FDIC.

Details of FDIC Coverage of Business Accounts

Total deposits in eligible business accounts from a corporation, partnership, LLC or unincorporated organization at a bank are covered up to $250,000. For example, if a corporation owns a checking account with $150,000 and a CD for another $150,000 at the same bank, the FDIC only insures $250,000, not the remaining $50,000. The corporation would need to transfer the remaining $50,000 to another bank for those funds to be eligible for FDIC coverage.

Deposits in personal accounts from owners or members of the corporation, partnership, LLC or unincorporated organization at the same bank are not used to calculate the total deposits of a business account.

Use the FDIC's estimator tool to calculate the coverage of your business accounts at an FDIC-insured bank.

(For related reading, see: Are Your Bank Deposits Insured?)

  1. Why is my 401(k) not FDIC-Insured?

    Learn about the Federal Deposit Insurance Corporation (FDIC) and whether its protection extends to 401(k) accounts or just ... Read Answer >>
  2. What US banks offer the best savings accounts?

    Explore the best savings accounts offered by national banks comparing annual yield and other factors. Learn why the highest-yield ... Read Answer >>
Related Articles
  1. Personal Finance

    The History Of The FDIC

    Find out why this corporation was developed and how it protects depositors from bank failure.
  2. Personal Finance

    The 7 Best Places to Put Your Savings

    You work hard to put your money away for the future, but where should you keep it?
  3. Personal Finance

    Where to Put Your Cash: Call Deposit vs. Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
  4. Personal Finance

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  5. Investing

    You Can Now Open a Goldman Sachs Account With $1

    Perhaps you thought you'd never be able to open a savings account at Goldman Sachs Group Inc., but life is full of surprises. The company now offers an online-only bank for retail customers.
  6. Insights

    Starbucks Has More Customer Deposits than Many Banks (SBUX)

    Recent financial analysis conducted by Standard & Poors shows that Starbuck's holds more customer deposits than several American banks.
  7. Investing

    Debt Mutual Funds Vs. Fixed Deposits

    Learn about the advantages and disadvantages of debt-oriented mutual funds and fixed deposit accounts, including how each investment generates income.
  8. Investing

    Best 2016 IRA Promotions (ETFC, BAC)

    Here are some of the best IRA promotions of 2016, with significant bonuses for large deposits.
  1. Federal Deposit Insurance Corporation (FDIC)

    The Federal Deposit Insurance Corporation (FDIC) is an independent ...
  2. Insured Financial Institution

    An insured financial institution is any bank or savings institution ...
  3. FDIC Problem Bank List

    To make the FDIC problem bank list, a U.S. bank must have financial, ...
  4. FDIC Improvement Act (FDICIA)

    The FDIC Improvement Act was passed in 1991 in response to the ...
  5. Deposit Interest Rate

    The deposit interest rate is the interest rate paid to deposit ...
  6. Risk-Based Deposit Insurance

    Risk-based deposit insurance includes premiums that reflect how ...
Trading Center