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FDIC Insurance on Escrow Account
We are Benefit Administrators for over 150 clients. They fund an escrow account from which we pay claims for their employees. It routinely has over $300,000 deposited in it. Does the FDIC insured to $100,000 apply to the account as a whole; or is each individual corporation insured up to $100,000. At any given moment, we know actually how much each of our clients has deposited into this escrow account, and what their balance is at that time.
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 If the deposit account title clearly reflects its status as an escrow account, each identifiable client (per your records) would have its definable interest in the account added to any other funds that client had in the same bank, and the total would be insured to $100,000. The names of the individual clients need not be included, but the words "agent," "agent for clients," "escrow for clients," "client escrow," or similar designations should appear.
Published on BankingQuestions.com 9/24/08
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