The standard maximum deposit insurance amount (SMDIA) for accounts held by corporations, whether classified as S Corporations or C Corporations, is $250,000. As a general rule, the number of partners, members or stockholders established by a corporation does not affect insurance coverage, and the personal accounts of a corporation’s partners, members or stockholders are not used to calculate the total deposits of the corporation’s account. However, all deposits owned by a corporation at the same bank are combined for purposes of the $250,000 limit.

Conversely, accounts held in the name of a sole proprietorship are not insured under the same ownership category as corporations, partnerships, and unincorporated associations.  Rather, they are classified as single ownership accounts and added to the owner’s other single accounts at the same bank, with the total of insured deposits limited to $250,000.

For resources related to our guidance, please see:

• FDIC Your Insured Deposits Brochure (“The number of partners, members, stockholders or account signatories established by a corporation, partnership or unincorporated association does not affect insurance coverage.”)

• 12 CFR 30.11(a) (“Corporate accounts. (1) The deposit accounts of a corporation engaged in any “independent activity” (as defined in § 330.1(g)) shall be added together and insured up to the SMDIA in the aggregate. If a corporation has divisions or units which are not separately incorporated, the deposit accounts of those divisions or units shall be added to any other deposit accounts of the corporation. If a corporation maintains deposit accounts in a representative or fiduciary capacity, such accounts shall not be treated as the deposit accounts of the corporation but shall be treated as fiduciary accounts and insured in accordance with the provisions of § 330.7 . . . .”)

• 12 CFR 330.1(g) (“Independent activity. A corporation, partnership or unincorporated association shall be deemed to be engaged in an “independent activity” if the entity is operated primarily for some purpose other than to increase deposit insurance.”)

• Section 335 of the Dodd-Frank Act, 12 USC 1821(a)(1)(E) (“Standard maximum deposit insurance amount defined: For purposes of this chapter, the term “standard maximum deposit insurance amount” means $250,000, adjusted as provided under subparagraph (F) after March 31, 2010 . . . .”)

• 12 CFR 330.6(b) (“Sole proprietorship accounts. Funds owned by a business which is a “sole proprietorship” (as defined in § 330.1(n)) and deposited in one or more deposit accounts in the name of the business shall be treated as the individual account(s) of the person who is the sole proprietor, added to any other individual accounts of that person, and insured up to the SMDIA in the aggregate.)