FDIC Insurance Misconception Number 2: Changing the Order of Names or Social Security Numbers

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FDIC Consumer News – Spring 2006 – FDIC Insurance Misconceptions


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FDIC Insurance: Do You Know As Much As You Think You Know?

Misconceptions: A Top 10 List


Misconception Number 2: Changing the order of names or Social Security Numbers can increase the coverage for joint accounts.

Many depositors mistakenly believe that by changing the order of Social Security Numbers, rearranging the names listed on joint accounts, or substituting "and" for "or" in account titles, they can increase their insurance coverage.

"Consumers are always telling us that they thought they could get more coverage if they did something like title one account for 'Mary and John Smith' and another account for 'Mary or John Smith,'" said Kathleen Nagle, chief of the Deposit Insurance Section in the FDIC's Division of Supervision and Consumer Protection. "These moves will have no impact on joint account coverage. The FDIC will simply add each person's share of all the joint accounts at the same institution and insure the total up to $100,000." (Note: Each person's share is presumed to be equal unless stated otherwise in the deposit account records.)


Spring 2006 | Misconception Number 1 | Misconception Number 2 | Misconception Number 3 |
Misconception Number 4 | Misconception Number 5 | Misconception Number 6 | Misconception Number 7 | Misconception Number 8 | Misconception Number 9 | Misconception Number 10


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 5/09/2006

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