The FDIC has amended its rule regarding deposit insurance to not require each co-owner of a joint account to personally sign the deposit account signature card to ensure the account is separately insured as a joint account. The final rule was made in consideration of reducing the regulatory burden associated with obtaining deposit account signature cards for all owners of joint accounts, to facilitate prompt payment of deposit insurance in the event of an insured depository institution’s (IDI) failure, and to embody a forward-thinking approach that permits the use of new and innovative technologies and processes. Under the new rule, the requirement to have each co-owner sign a signature card could be satisfied by information contained in the deposit account records of the IDI establishing co-ownership of the deposit account.
Examples that would fulfill the requirement include the following: evidence that the financial institution has issued a debit card to each co-owner, evidence of online or telephone banking access, etc. The final rule does not modify or affect any state law requirements to use signatures to establish ownership of a deposit account.