ICBA and First Southern State Bank Offer Tips on FDIC Insurance During COVID-19 Pandemic

The Independent Community Bankers of America (ICBA) and First Southern State Bank want consumers to rest assured that their Federal Deposit Insurance Corp. (FDIC) insured deposits are safe in their local community bank, while offering tips for expanding coverage.

“First Southern wants to help local consumers understand the facts when it comes to their money,” said Jack Lovelady, President and CEO of First Southern State Bank. “The basic coverage for deposits in an FDIC-insured community bank is up to $250,000 per depositor and $250,000 per owner for certain retirement accounts, but the FDIC provides separate coverage for deposit accounts held in different categories of ownership that allow a customer to have more than $250,000 insured at the same community bank.” 

Some basic examples of how depositors can expand their coverage beyond $250,000 include:

  • Accounts owned by a single person are separately insured from joint accounts or retirement accounts owned by that person.
  • Two individuals can each have $250,000 insured in separate accounts with one name each and have another $500,000 insured in an account that bears both their names.

In addition, revocable Payable on Death (POD)* accounts are another option that allow customers to expand beyond $250,000 in the same bank. For example, all of the following accounts could be insured for one couple at one community bank:

  • John Doe, POD to Jane Doe: $250,000
  • Jane Doe, POD to John Doe: $250,000
  • John and Jane Doe, POD to Baby Doe 1, Baby Doe 2, and Baby Doe 3: $750,000
  • John and Jane Doe, POD to Grandchild Doe 1, Grandchild Doe 2, and Grandchild Doe 3: $750,000

“Community bank customers can bank with confidence at their local community bank knowing their money is safe because it is insured by the FDIC and held in well-capitalized and well-regulated institutions,” said ICBA President and CEO Rebeca Romero Rainey. “Since the FDIC was founded in 1933, no one has ever lost a penny of FDIC-insured funds.”

The FDIC is the best source for tools to determine deposit insurance coverage, including an online Electronic Deposit Insurance Estimator that can be found on the FDIC’s website at

*This is a brief summary of some of the FDIC deposit insurance rules. Depositors should consult with their legal advisers and with the FDIC website ( prior to establishing different bank accounts or changing the title of an existing bank account to maximize deposit insurance.

About First Southern State Bank

Established in 1910, First Southern State Bank is a state-chartered community bank serving individuals, small-to-medium-sized businesses, and large corporations in Northeast Alabama. It offers a wide range of personal and commercial banking, loans, and services via a dedicated, local staff committed to providing superior service and treating customers like family. First Southern State Bank has 10 locations in Cherokee, DeKalb, Jackson and Marshall counties of Alabama.  To learn more about First Southern State Bank, visit

About ICBA

The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at