Supplemental Deposit Insurance
Protect deposits in excess of FDIC/NCUA coverage limits
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Product Information
Coverage
The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) are government entities dedicated to regulating banks and credit unions, respectively. Both organizations guarantee deposits, at financial institutions they regulate, up to $250,000 per owner per ownership category. When a bank or credit union fails, deposits in excess of FDIC and NCUA coverage limits may be forfeited leading to financial losses and disruptions in day-to-day activities. Our supplemental deposit insurance provides protection for deposits in excess of FDIC/NCUA coverage limits. Below are a few scenarios detailing our insurance coverage should a financial institution fail.
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Assumed coverage limits for all scenarios:
- FDIC/NCUA Coverage Limits: $250,000
- Supplemental Deposit Insurance Coverage Limit: $100,000
- Total Coverage Limit: $350,000
Scenario 1:
Total deposits less than FDIC/NCUA coverage limits
- Total Deposits: $245,000
- FDIC/NCUA Coverage: $245,000
- Supplemental Deposit Insurance Coverage: $0
-Financial Loss: $0
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Scenario 2:
Total deposits greater than the FDIC/NCUA coverage limits
but less than the total coverage limit
- Total Deposits: $325,000
- FDIC/NCUA Payout: $250,000
- Supplemental Deposit Insurance Payout: $75,000
- Financial Loss: $0
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Scenario 3:
Total deposits exceed total coverage limit.
- Total Deposits: $375,000
- FDIC/NCUA Payout: $250,000
- Supplemental Deposit Insurance Payout: $100,000
- Finacial Loss: $25,000
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Our supplemental deposit insurance will assist you in mitigating the risks associated with exceeding FDIC or NCUA limits and ensuring the safety of your deposits. It is important to get enough coverage to cover your potential losses while not getting too much coverage that it goes to waste, such as in scenario 1 above. Every situation is different, and we are here to assist you in choosing the right amount of coverage to meet your needs. Contact us or start a quote to see how we can meet your needs.
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Products Information
Benefits
​Protect Deposits:
Our supplemental deposit insurance covers deposits in excess of the FDIC or NCUA limits. This means that even if a bank or credit union fails, your deposits above the insured limits will still be protected, minimizing your financial losses.​
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Peace of Mind:
When solvency issues arise at your chosen financial institution, it can create uncertainty and disrupt your day-to-day operations. By having our supplemental deposit insurance in place, you can have peace of mind knowing that your funds are safeguarded, allowing you to focus on your core activities without worrying about potential losses. Furthermore, you can request customers to be insured as a way to ensure payment from customers whose bank may become insolvent.
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Alleviate Withdrawal Stress:
A bank or credit union failure can lead to increased withdrawal requests from depositors, putting additional strain on the financial institution. By offering supplemental deposit insurance, we help alleviate this stress by providing an alternative option for depositors to protect their funds, reducing the burden on the failing institution.