FDIC Insurance

Federal Deposit Insurance protects deposits made in the event that a bank fails.

All deposits at Pacific Crest Savings Bank are FDIC insured to $100,000. For many people the $100,000 limit is enough coverage, but for those needing greater insurance, multiple account ownerships can dramatically increase coverage.

Ownership means how funds are held and the account is titled. There are several types of ownership including individual, joint, revocable trust and self-directed retirement plans like IRAs. For example, with an individual account the funds are owned by one individual and the account is in that person's name only.

With a joint account, the account is in the name of two or more people and all have the right to withdraw funds. Generally, each person with a joint account is accorded an equal share of that account and each person is insured to $100,000.

Revocable trust accounts enable the owner of the funds to designate a beneficiary to receive the funds if the owner dies. However, while alive the owner retains complete control over the money and is insured up to $100,000 for each qualifying beneficiary.

It is important to remember that simply opening a number of accounts does not increase coverage - the type of ownership must be different in order to increase the level of FDIC insurance.