Just how much money does the Federal Deposit Insurance Corporation insure in a bank account? FDIC media contact David Barr said the rules governing FDIC insurance can be hard to understand.

(Advertisement)

"A couple can have up to $1.1 million in a bank and have it all covered by FDIC insurance," Barr said. "It all depends on how the accounts are structured.

When asked about joint accounts held by two people who weren't related Barr said the rules were complex.

"It depends on how those accounts are held. A true joint account will be insured up to $100,000 per person, however it has to be equal ownership, " Barr said. "If it isn't a true joint account, if someone is a signatory but doesn't have ownership, the account falls under the personal limit of the owner."

Barr said trust accounts are a source of confusion for people trying to keep their accounts covered under FDIC rules.

"Another area where getting the structure correct is important are certain trust accounts," Barr said. "It's key that there is a certain family relationship between the people in the trust. Parents siblings, spouses, children and grandchildren qualify. Otherwise the trust gets lumped in to your personal limit. Nieces, nephews and cousins aren't qualified relatives for the trust."

Barr said it was up to the account owners to make sure they have the proper type of account to be under the FDIC umbrella.

"You have to be very careful if you're attempting to structure your accounts to exceed the $100,000 limit," Barr said. "The ultimate responsibility lies with the depositor. Even if you have followed the advice of the banker it is the depositor who has the responsibility to structure the account correctly. The rules are tricky and can be complex so you have to be very careful."

The FDIC has a way to help people make sure they have their accounts set up correctly to maximize the amount covered under FDIC insurance, it's E.D.I.E. or Electronic Deposit Insurance Estimator and it can be found on the FDIC's Web site www.fdic.gov. For those without Web access the FDIC has a phone line 1(877)-ASK-FDIC (275-3342).