- “Extended” coverage isn’t a bigger FDIC limit — it’s the standard limit applied across many insured institutions.
- Pass-through insurance lets deposits placed by an administrator be insured in each client’s name when recordkeeping rules are met.
- A deposit administration program can place funds across hundreds of institutions through one account.
- Coverage depends on the number of institutions used, ownership, and your other deposits at those banks.
What “extended deposit insurance” means
The FDIC limit is fixed at $250,000 per depositor, per bank, per ownership category. “Extended,” “excess” or “enhanced” deposit insurance refers to strategies that multiply that coverage by spreading deposits across many insured institutions — not to a special, larger FDIC policy.
Common ways to extend coverage
Organizations generally (1) open accounts at several banks themselves, (2) use a bank’s reciprocal deposit or sweep program, or (3) use an independent deposit administration program. Each approach places deposits at multiple insured institutions; they differ in how many institutions are available, how rates are set, and how much administration you take on.
How pass-through insurance works
When an administrator places funds at a bank on a client’s behalf, FDIC rules allow the deposit to be insured as if the client held it directly — “passing through” to the beneficial owner — provided the account is properly titled and records identify each owner and their share. Ampersand structures accounts and records to support pass-through coverage in your name.
Doing it yourself vs. one program
Self-managed spreading means many account openings, separate statements, rate negotiations, and constant monitoring as balances change. With Ampersand you open one account, keep your operating bank, and get access to a marketplace of 300+ insured banks and credit unions — with one login, one statement and one 1099-INT.
Questions to ask any provider
How many insured institutions are available? Who sets the rates? Are deposits titled for pass-through coverage? Can I exclude banks I already use? How fast can I access funds? Is the provider independently audited (for example, SOC 2 Type II)?
Frequently asked
Not at a single bank in one ownership category. You can, however, insure more in total by spreading deposits across multiple insured institutions.
Related reading
More guides
Ampersand, Inc. is not a bank or depository institution. Ampersand acts as administrator in placing deposits at FDIC- or NCUA-insured banks or credit unions; deposit insurance is provided by those institutions, subject to standard limits, aggregation rules, and pass-through requirements. ‡ Program rates have averaged 5–9x the FDIC national average savings rate, as of 10/15/2026; averages are not a guarantee of any client’s rate. § CDs are issued by participating insured institutions; “most competitive” compares per-bank CD rates with publicly available national CD rate data as of 09/19/2026. A placement fee applies to CDs and is charged at maturity, subject to a signed agreement with Ampersand; see your agreement for fee details. Rates vary and are not guaranteed. This guide is general information, not legal, tax or investment advice. Full disclosures →