Policies & Disclosures
We know that you want to be sure that your money is safe and secure, and that you may have questions about how your money is insured. You can rest easy, because The Claxton Bank is a member of the Federal Deposit Insurance Corporation, or FDIC for short, which insures each depositor at TCB up to $250,000.00 (and possibly more). Our top two priorities are providing a premier banking experience and securing your money, which is why we constantly monitor updates and changes to legislation and FDIC coverage, and share those changes with you and our employees as soon as possible.
The Federal Deposit Insurance Corporation, or FDIC, is an independent agency of the United States government that was established by Congress with a mission to insure bank deposits, and protect your money in the event that an FDIC insured bank fails. The FDIC is backed by the full faith and credit of the U.S. Treasury, and deposits are also protected by the financial strength and stability of The Claxton Bank, which has been serving the needs of individuals and businesses since 1941. Since the FDIC was established in 1933, “no depositor has ever lost a penny of their FDIC-insured deposits.”1 You can feel confident, knowing that your insured deposits at The Claxton Bank are protected.
Your TCB deposits are fully protected up to the standard deposit insurance amount set by the Federal Deposit Insurance Corporation (FDIC). This full coverage remains in place even during periods of government shutdown since the FDIC is funded through assessments on insured institutions, not through appropriated funds. The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. You may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different categories.
FDIC insured accounts include checking and savings accounts, money market deposit accounts, CDs and deposits in IRAs. The FDIC does not insure money invested in non-deposit investment products, such as stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments were bought from an insured bank. The FDIC does not insure U.S. Treasury bills, bonds, or notes. The table below can help you determine if your TCB account is covered by FDIC insurance or not.
The standard FDIC coverage amount is up to $250,000 per depositor, per insured bank, for each account ownership category. If you have joint deposit accounts, you and the other account co-owner(s) are covered up to $250,000 each in the joint account ownership category. Your share of each joint account on which you are an owner will be added together to determine this coverage.
Individual accounts are accounts owned by one person and titled in that person's name only. All individual accounts at the same insured bank are added together and the total is insured up to $250,000. So for example if you have a checking account and a CD at the same bank, both in your name only, the two accounts are added together and insured up to $250,000. Individual accounts include: Single ownership accounts, Sole proprietorship accounts, Agent, custodian, conservator accounts, UTMA accounts, Estate accounts.
Each person is entitled to a maximum of $250,000 coverage for deposits in all of their joint accounts in addition to individual insured accounts. So if a couple shares a joint checking and savings account at the same insured bank, each co-owners shares of the two accounts are added together and insured up to $250,000, effectively providing up to $500,000 in coverage for the couples accounts.
Some types of retirement accounts are insured separately from other individually owned deposits a customer has at the same FDIC insured bank, titled in the same name. Only Individual Retirement Accounts (including traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plans for Employees (SIMPLE) IRAs), Section 457 deferred compensation plan accounts (whether self-directed or not), Self-directed defined contribution plan accounts, Self-directed Keogh plan (or H.R. 10 plan) accounts are insured in this ownership category. All deposits that a customer has in these types of retirement plans are added together and insured up to $250,000. Please note: Naming beneficiaries on a retirement account does not increase deposit insurance coverage.
In general, business accounts receive $250,000 in FDIC insurance. This includes municipalities. Please note, however, that funds owned by a business that is a sole proprietorship are NOT insured under this category. Rather, they are insured as the single account funds of the person who is the sole proprietor.
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.
The scenarios above are an example of how FDIC insurance works, and what we’re showing you isn’t legal, tax, investment or financial advice. If you have questions about FDIC insurance, consult a financial professional or go to https://www.fdic.gov/deposit/deposits for more details. For additional FDIC insurance information, we encourage you to visit the FDIC online or call 1-877-ASK-FDIC (1-877-275-3342) Monday–Friday 8:00 a.m.–8:00 p.m. ET or call The Claxton Bank Directly at 912-739-3322.