[retiredguy123]

Originally Posted by Bill14564

Still just one account. Different account category (the beneficiary triggers the Revocable Trust) but still one account. With just one beneficiary it would still be insured for $250,000.

What this does change: Normally, two accounts at the same bank held by the same person would be insured to a combined $250,000 (NOT $250,000 each). By adding a beneficiary to ONE of the accounts moves that account into the Revocable Trust category. Therefore, the account holder would be insured for $250,000 on the savings account plus $250,000 on the revocable trust. A total of $500,000 but only $250,000 maximum on each of the two different account categories.

(See difference between joint account and beneficiary. See also table above example 4 and text of example 5)

And most importantly, talk to a licensed professional for guaranteed accurate financial advice.

I agree. But, it does seem to mean that you can increase your FDIC insurance from $250K to $500K or even more by opening several accounts in one bank and adding beneficiaries to the different accounts.