An Excess Deposit Bond is purchased by banks to insure individual depositors for amounts exceeding FDIC insurance limits.
The FDIC protects consumers against the loss of their deposits if an FDIC-insured bank or savings association fails. The FDIC insurance limit is $100,000 per depositor per insured bank, or $250,000 for self-directed retirement accounts.

Excess Deposit Bonds enable banks to attract and retain large deposits by providing A+ rated insurance for the depositors, including private customers, non-profit organizations and, in most states, public funds. In the highly competitive banking industry, attracting large dollar deposits is critical for growth and profitability.

• The bank purchases a limit of coverage and identifies specific depositors to be included under the limit. Individual depositors may be added or deleted from coverage at any time.
• Premium for the insurance coverage is paid by the bank.
• Depositors receive individual Account Holder Certificates specifying their insured deposits.

Most banks currently secure large dollar deposits by either:

• Pledging securities, which can be costly and administratively cumbersome;
• Participating in a CD exchange network, which is limited to Certificates of Deposit; or
• Purchasing Excess Deposit Bond coverage, if available in the bank’s state.

• Cost-effective method of attracting deposits
• Requires minimal administrative work
• Does not impact the bank’s liquidity position
• May be used for all types of deposits—private customers, non-profit organizations and, in most states, public funds

Yes, depositors receive an individual certificate as proof of insurance specific to their account.

Subject to our underwriting guidelines, limits are available in $250,000 increments up to $15 million.