Volume 3: When It Goes Wrong, and Your Plan · Chapter 8

Your Deposit Coverage Plan

Build a one-page plan that lists every account by bank and ownership category, shows the insured and uninsured dollars, picks a fix for each gap and sets when you will check again.

Read time: 14 min
Complexity: Intermediate
Topic: Planning

SwitchWize Research DeskReviewed by Jay Rege, Head of Financial Research, on Oct 4, 2026Updated Oct 4, 2026

The short answer

A coverage plan is one page: every account listed by bank and ownership category, the insured and uninsured dollars for each, the fix chosen for every gap, and a review date. On a hypothetical $1,390,000 household, it finds $140,000 exposed and closes the gap with two new banks.

Chapter 4 deep diveFDIC and NCUA Insurance: Getting Past $250,000The Liquidity Guidebook chapter on coverage teaches the $250,000 rule and the ownership categories in one pass; this chapter assumes it and turns it into a plan you keep.

Which of these are you?

You have one bank and one name on every account. Your plan is short: one bucket per category and a check that none is over. Fill in section 1 and 2 and stop.
You are a couple with joint accounts, retirement accounts and perhaps a trust. The buckets multiply, and the counts are where mistakes hide. Use the full template.
You use apps, a broker or a deposit marketplace. Add the concentration check in section 4. Two products can sit on one bank and share one limit.
You hold a large balance for a dated goal, such as a house or a tax bill. Run the plan, then read the failure chapter to see what a gap would cost in time as well as dollars.

Section 1: What goes in the ledger?

The ledger has one row per account and these columns: bank, owner or owners, ownership category, beneficiaries if it is a trust, balance, and where you confirmed the bank is insured. The columns come from the rule: the limit is $250,000 per depositor, per insured bank, per ownership category (12 CFR 330.1(o), 330.3), so those three facts decide every row.

Bank (charter confirmed)
Owner(s)
Category
Co-owners or beneficiaries
Balance ($)
Notes

Bank (charter confirmed)
Owner(s)
Category
Co-owners or beneficiaries
Balance ($)
Notes

Bank (charter confirmed)
Owner(s)
Category
Co-owners or beneficiaries
Balance ($)
Notes

Bank (charter confirmed)
Owner(s)
Category
Co-owners or beneficiaries
Balance ($)
Notes

Bank (charter confirmed)
Owner(s)
Category
Co-owners or beneficiaries
Balance ($)
Notes

Bank (charter confirmed)
Owner(s)
Category
Co-owners or beneficiaries
Balance ($)
Notes

#	Bank (charter confirmed)	Owner(s)	Category	Co-owners or beneficiaries	Balance ($)	Notes
1
2
3
4
5
6

Four entry rules keep the ledger honest.

Different brands can be one bank. Confirm the charter in the FDIC's BankFind, not from the logo. Branches of one bank are added together; separately chartered banks are insured separately (12 CFR 330.3(b)).
Capacity, not account count, makes a bucket. All your single-owner accounts at one bank are one pool. Deposits held in the same right and capacity are combined; different capacities are insured separately (12 CFR 330.3(a)).
Retirement is its own category. The FDIC brochure lists traditional, Roth, SEP and SIMPLE IRAs and self-directed 401(k), profit-sharing and Keogh plans among certain retirement accounts, added together per owner per bank. Note that the regulation text for retirement accounts (12 CFR 330.14) refers to IRAs under the Internal Revenue Code section for individual retirement accounts and does not name Roth IRAs; the FDIC's brochure and its banker guide do, so use those for the classification.
Mark every account that sits behind an app, broker or marketplace. Write the bank behind it in the Notes column. Chapter 3 shows how.

Chapter 1 deep diveSingle, Joint and Business Accounts: How Coverage Is CountedChapter 1 gives the rules and a case library for single, joint and business accounts, so you can classify each row correctly. Chapter 2 deep diveTrust, POD and Retirement Accounts: The $1.25 Million QuestionChapter 2 covers trusts, payable-on-death accounts and retirement accounts, the rows most often mis-titled.

Section 2: What is the gap?

Group the rows by bank and category, add each group, and compute insured as the smaller of the balance and the limit. The gap is the balance minus insured. The limit for a joint bucket is $250,000 times the number of co-owners, and for a trust it is $250,000 times the number of eligible beneficiaries, up to 5.

Here is a worked case. Priya and Marcus, a hypothetical household, hold $1,390,000. The ledger has six rows.

Bank: Bank A
Owner(s): Priya
Category: Single
Balance ($): 320,000

Bank: Bank A
Owner(s): Priya and Marcus
Category: Joint
Balance ($): 380,000

Bank: Bank A
Owner(s): Priya and Marcus
Category: Joint
Balance ($): 160,000

Bank: Bank B
Owner(s): Marcus
Category: Retirement
Balance ($): 270,000

Bank: Bank C
Owner(s): Marcus
Category: Single
Balance ($): 230,000

Bank: Bank C
Owner(s): Marcus
Category: Single, held through an app that sits on Bank C
Balance ($): 30,000

#	Bank	Owner(s)	Category	Balance ($)
1	Bank A	Priya	Single	320,000
2	Bank A	Priya and Marcus	Joint	380,000
3	Bank A	Priya and Marcus	Joint	160,000
4	Bank B	Marcus	Retirement	270,000
5	Bank C	Marcus	Single	230,000
6	Bank C	Marcus	Single, held through an app that sits on Bank C	30,000

Rows 2 and 3 are one bucket, because they are joint accounts with the same co-owners at the same bank. Rows 5 and 6 are one bucket if the app's deposits qualify for pass-through coverage. The grouped result:

Bank A, single

Balance ($): 320,000
Limit ($): 250,000
Insured ($): 250,000
Gap ($): 70,000

Bank A, joint (2 co-owners)

Balance ($): 540,000
Limit ($): 500,000
Insured ($): 500,000
Gap ($): 40,000

Bank B, retirement

Balance ($): 270,000
Limit ($): 250,000
Insured ($): 250,000
Gap ($): 20,000

Bank C, single

Balance ($): 260,000
Limit ($): 250,000
Insured ($): 250,000
Gap ($): 10,000

Total

Balance ($): 1,390,000
Limit ($)
Insured ($): 1,250,000
Gap ($): 140,000

Bucket	Balance ($)	Limit ($)	Insured ($)	Gap ($)
Bank A, single	320,000	250,000	250,000	70,000
Bank A, joint (2 co-owners)	540,000	500,000	500,000	40,000
Bank B, retirement	270,000	250,000	250,000	20,000
Bank C, single	260,000	250,000	250,000	10,000
Total	1,390,000		1,250,000	140,000

Every account here looks fine on its own. The $380,000 joint account is under its $500,000 limit, and the $230,000 account at Bank C is under $250,000. The gaps appear only when the ledger is grouped, which is the point of a ledger.

The calculator below performs the grouping and names the specific move for each gap. Owner names are optional: with names it counts joint accounts owner by owner (12 CFR 330.9(b)), and without them it groups joint accounts by number of co-owners. It is a screening model: it assumes equal ownership shares on joint accounts, treats a trust entry as one owner, and does not model employee benefit plans, public units or the larger-trust rules. For a bank-specific answer use the FDIC's estimator, EDIE, or our FDIC checker.

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Section 3: Which fix do you choose?

A gap closes in one of four ways: retitle within the bank, add a bank, use a reciprocal network, or accept the exposure on purpose. Choose by size and by how much you want to manage. Each fix has a cost, and the plan should state it.

Retitle within the bank

What it does: Moves money to another category with unused room, such as a joint or retirement bucket
Works when: Another owner or category has headroom and the ownership is real
Cost to watch: Retitling changes ownership; check tax and estate effects with the bank

Add a bank

What it does: Opens a new bucket at a separately chartered bank
Works when: The gap is modest and you accept one more login
Cost to watch: One more account to track and reconcile

Reciprocal network

What it does: A private network splits a large deposit across member banks
Works when: The gap is large and you want one relationship
Cost to watch: Private-network conditions and your own bank's retained balance

Accept it on purpose

What it does: Leaves an amount above the limit
Works when: The amount is small relative to your reserves and you could wait years for it
Cost to watch: Recovery above the limit is a claim, not a promise

Fix	What it does	Works when	Cost to watch
Retitle within the bank	Moves money to another category with unused room, such as a joint or retirement bucket	Another owner or category has headroom and the ownership is real	Retitling changes ownership; check tax and estate effects with the bank
Add a bank	Opens a new bucket at a separately chartered bank	The gap is modest and you accept one more login	One more account to track and reconcile
Reciprocal network	A private network splits a large deposit across member banks	The gap is large and you want one relationship	Private-network conditions and your own bank's retained balance
Accept it on purpose	Leaves an amount above the limit	The amount is small relative to your reserves and you could wait years for it	Recovery above the limit is a claim, not a promise

The Liquidity chapter on coverage covers networks and the three ways past $250,000, so they are not repeated here.

The Priya and Marcus plan uses only the second fix. It moves $72,500 from the Bank A single account to a new Bank D single account, $45,000 from the Bank A joint bucket to a new Bank D joint account, $22,500 of retirement money to a new Bank E retirement account, and $12,500 out of the app to a new Bank E single account. Moving retirement money is a transfer between custodians, and the custodian should confirm how to do it so that it is not treated as a withdrawal. The total moved is $152,500 and the new buckets are at Banks D and E.

The moves are larger than the gaps ($152,500 against $140,000), and the extra $12,500 is deliberate. That is the next rule.

Section 4: How much cushion, and which apps share a bank?

Leave a cushion under every limit equal to the interest the bucket will earn between reviews. Insurance counts principal and interest accrued through the date of failure, so a bucket at exactly $250,000 is over the limit by the next interest credit. On a hypothetical 4.00% simple rate, 90 days of interest is $2,465.75 on $250,000 and $4,931.51 on a $500,000 joint bucket. Round up to $2,500 and $5,000.

The targets are then $247,500 for a one-owner bucket and $495,000 for a two-owner joint bucket. The table shows the household after the plan.

Bank A, single

Before ($): 320,000
After ($): 247,500
Insured after ($): 247,500
Gap after ($): 0

Bank A, joint

Before ($): 540,000
After ($): 495,000
Insured after ($): 495,000
Gap after ($): 0

Bank B, retirement

Before ($): 270,000
After ($): 247,500
Insured after ($): 247,500
Gap after ($): 0

Bank C, single (direct 230,000 plus app 17,500)

Before ($): 260,000
After ($): 247,500
Insured after ($): 247,500
Gap after ($): 0

Bank D, single

Before ($): 0
After ($): 72,500
Insured after ($): 72,500
Gap after ($): 0

Bank D, joint

Before ($): 0
After ($): 45,000
Insured after ($): 45,000
Gap after ($): 0

Bank E, retirement

Before ($): 0
After ($): 22,500
Insured after ($): 22,500
Gap after ($): 0

Bank E, single

Before ($): 0
After ($): 12,500
Insured after ($): 12,500
Gap after ($): 0

Total

Before ($): 1,390,000
After ($): 1,390,000
Insured after ($): 1,390,000
Gap after ($): 0

Bucket	Before ($)	After ($)	Insured after ($)
Bank A, single	320,000	247,500	247,500
Bank A, joint	540,000	495,000	495,000
Bank B, retirement	270,000	247,500	247,500
Bank C, single (direct 230,000 plus app 17,500)	260,000	247,500	247,500
Bank D, single	0	72,500	72,500
Bank D, joint	0	45,000	45,000
Bank E, retirement	0	22,500	22,500
Bank E, single	0	12,500	12,500
Total	1,390,000	1,390,000	1,390,000

The balance is unchanged and the exposed amount went from $140,000 to $0. Raise the review interval or the rate and the cushion grows in proportion; the cushion is your choice, set from your own rate.

The concentration check is the Bank C line. An app and a direct account that sit on the same bank share one limit if the app's deposits get pass-through coverage, and that depends on the bank's records identifying you and your interest (12 CFR 330.5(b)). If they do not qualify, the app balance may not be insured to you individually as a deposit at that bank, and the plan should treat it as at risk. Count it both ways, and keep it small until you have confirmed the structure.

Chapter 3 deep diveWhich Bank Is Behind Your App? Pass-Through Coverage CheckedChapter 3 shows how to find the bank behind an app and when two products share one limit. Chapter 5 deep diveSweeps, Brokered Deposits and Marketplaces: Who Is Actually InsuredChapter 5 covers sweeps, brokered deposits and marketplaces, where one sign-up can place money at many banks. Chapter 4 deep diveSynapse and Evolve: What Failed and What ChangedChapter 4 explains why a middleware failure is not covered like a bank failure, and holds the dated tracker for rule changes.

Section 5: When do you review the plan?

Review on events and on a calendar date. Events change the counts without warning, and a calendar date catches slow drift such as interest. The list below is a starting point; add your own.

New account, new bank or new app

Why it changes the plan: Adds a bucket or joins an existing one
Where to look: Sections 1 and 4

A co-owner or beneficiary changes

Why it changes the plan: Joint and trust limits scale with the count
Where to look: Chapters 1 and 2

An owner dies

Why it changes the plan: Coverage is unchanged for six months, then the account may need restructuring (12 CFR 330.3(j))
Where to look: Chapter 1

Your bank merges or is acquired

Why it changes the plan: Deposits assumed in a merger keep separate coverage for a limited window, then combine
Where to look: Chapter 1

A large deposit or sale proceeds arrive

Why it changes the plan: A bucket can jump past its limit in a day
Where to look: Sections 2 and 3

Interest pushes a bucket toward its limit

Why it changes the plan: Coverage counts accrued interest
Where to look: Section 4

A credit union or state-insured bank holds part of the money

Why it changes the plan: Different insurers and rules
Where to look: Chapter 6

A rule changes or a pending proposal moves

Why it changes the plan: Limits and recordkeeping duties can change
Where to look: Chapter 4 tracker

Your bank fails

Why it changes the plan: The plan becomes a claims checklist
Where to look: Chapter 7

Trigger	Why it changes the plan	Where to look
New account, new bank or new app	Adds a bucket or joins an existing one	Sections 1 and 4
A co-owner or beneficiary changes	Joint and trust limits scale with the count	Chapters 1 and 2
An owner dies	Coverage is unchanged for six months, then the account may need restructuring (12 CFR 330.3(j))	Chapter 1
Your bank merges or is acquired	Deposits assumed in a merger keep separate coverage for a limited window, then combine	Chapter 1
A large deposit or sale proceeds arrive	A bucket can jump past its limit in a day	Sections 2 and 3
Interest pushes a bucket toward its limit	Coverage counts accrued interest	Section 4
A credit union or state-insured bank holds part of the money	Different insurers and rules	Chapter 6
A rule changes or a pending proposal moves	Limits and recordkeeping duties can change	Chapter 4 tracker
Your bank fails	The plan becomes a claims checklist	Chapter 7

Pick a calendar date, such as the first week of January and July, and put it where you will see it. Rate trackers, including ours, watch rates, not coverage, so a coverage review is a date you set yourself.

Chapter 6 deep diveCredit Unions and State Funds: NCUA, Private Excess and Massachusetts DIFChapter 6 covers NCUA coverage, its dated trust-rule change, and the private and state funds above it. Chapter 7 deep diveWhen a Bank Fails: The Payout TimelineChapter 7 shows what a failure costs in days and dollars, which tells you how large a gap you could live with.

Section 6: The one-page plan

Copy this table, fill it in once, and update it when a trigger fires. It is the whole plan.

Date of this plan

Your entry

Total deposits ($)

Your entry

Total insured ($)

Your entry

Total exposed ($)

Your entry

Largest exposed bucket (bank, category, $)

Your entry

Fix chosen for each gap (move, retitle, add a bank, network, accept)

Your entry

Cushion per bucket ($), from rate and review interval

Your entry

Apps and brokers, with the bank behind each

Your entry

Documents on file (trust copy, beneficiary list, statements)

Your entry

Second account for bills (bank, balance $)

Your entry

Calendar review dates

Your entry

Triggers I will act on

Your entry

Date confirmed in EDIE or with the bank

Your entry

Item	Your entry
Date of this plan
Total deposits ($)
Total insured ($)
Total exposed ($)
Largest exposed bucket (bank, category, $)
Fix chosen for each gap (move, retitle, add a bank, network, accept)
Cushion per bucket ($), from rate and review interval
Apps and brokers, with the bank behind each
Documents on file (trust copy, beneficiary list, statements)
Second account for bills (bank, balance $)
Calendar review dates
Triggers I will act on
Date confirmed in EDIE or with the bank

Two entries do work that is easy to skip. The documents line matters because the FDIC may ask for a trust document or an owner list before it can finish an insurance determination. The second-account line matters because a payoff week freezes checks on the failed bank. Chapter 7 gives the reasons.

The coverage plan loop

List
Every account by bank, owner and category
Group
Add each bucket; insured is the smaller of balance and limit
Fix
Move, retitle, add a bank or accept on purpose
Cushion
Leave room for interest accrued between reviews
Check apps
Count app balances with the bank behind them
Review
On a trigger or a set date, start again

The plan is a loop. List every account by bank and ownership category. Group them into buckets and compute insured and uninsured dollars. Choose a fix for each gap and leave a cushion for interest. Check the apps that share a bank. Write the one-page plan and set review dates. When a trigger fires or a review date arrives, return to the list.

What this plan does not do

The plan counts deposit insurance. It does not rate any bank, and it does not cover money in securities, funds or crypto, which sit outside deposit insurance. It also uses a simplified model. Larger trusts, employee benefit plans, public units and unusual joint arrangements follow rules the calculator does not model, so confirm any large balance in EDIE or with the bank before you move money. Insurance answers what you would recover; how likely a failure is, and how to judge a bank, is a different question that the Liquidity Guidebook takes up.

Chapter 18 deep diveIs Your Bank Safe? Beyond FDIC InsuranceThe Liquidity Guidebook chapter on bank safety covers the public indicators and the habit of checking them, which this plan does not. Chapter 19 deep diveYour Personal Liquidity PlanThe Liquidity Guidebook capstone sets how much cash you need and where it sits; this plan makes sure the insured part is counted right.

Frequently asked questions

How do I check whether all my deposits are insured?

List every deposit by bank and ownership category, then add the balances inside each bucket. The limit is $250,000 per depositor, per insured bank, per ownership category, so insured is the smaller of the bucket and its limit. Anything above is exposed. The FDIC's own estimator, EDIE, gives the official answer for a specific bank.

How often should I review my deposit coverage?

Review when something changes and at a fixed date at least twice a year. Events that change the counts include a new account, a death, a marriage, a merger of your bank, a large deposit, and interest pushing a balance past a limit. The calendar date catches the slow drift that no single event announces.

Why leave a cushion under the limit?

Insurance counts interest accrued through the date of a failure, so a balance just under the limit can cross it. At a hypothetical 4.00% simple rate, $250,000 earns $2,465.75 in 90 days. A cushion of that size keeps a bucket insured between reviews. Choose the cushion from your own rate and review interval.

Does my money at an app count toward the limit at the bank behind it?

If the app's deposits qualify for pass-through coverage, they can be added to your own deposits at the same bank in the same category. Pass-through needs the relationship disclosed in the bank's records and the details ascertainable (12 CFR 330.5(b)). Confirm the bank behind the app, then count it in the same bucket as your direct account there.

Sources

12 CFR 330.1(o) (standard maximum deposit insurance amount, SMDIA), retrieved 2026-10-04
12 CFR 330.3 (general principles: rights and capacities, separate banks, deceased owner), retrieved 2026-10-04
12 CFR 330.5 (recognition of fiduciary relationships, pass-through requirements), retrieved 2026-10-04
12 CFR 330.14 (retirement and other employee benefit plan accounts), retrieved 2026-10-04
FDIC: Your Insured Deposits (ownership categories and retirement accounts), retrieved 2026-10-04
FDIC: Payment to Depositors (interest accrued through the date of failure), retrieved 2026-10-04
FDIC: EDIE, the Electronic Deposit Insurance Estimator, retrieved 2026-10-04

Educational content, not individualized financial, tax or legal advice. Examples use hypothetical figures unless a source is cited. Report an error at our corrections page.