6.3.2.2 Treatment in case of Death of Co-owner

Given that the FDIC does not distinguish coverage based on whether the Joint accounts are held under ‘Rights of survivorship’ or ‘Tenants in common’, the application treats death across all joint accounts in the same manner. If a co-owner dies, the deposit balance applicable to the co-owner is distributed to the other co-owners.

For a Joint Account, on the death of a co-owner, if the number of surviving owners is not more than 1, then such accounts revert to be treated in the SGL category.