For Release
WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) Board of Directors today adopted a final rule to amend part 328 of its regulations to modernize the rules governing use of the official FDIC signs and advertising statements, and to clarify the FDIC’s regulations regarding false advertising, misrepresentations of deposit insurance coverage, and misuse of the FDIC’s name or logo.
“The banking industry and practices have substantially changed since the FDIC official sign and advertising rules were last significantly updated in 2006.” said Chairman Gruenberg. “The revisions extend the certainty and confidence that the FDIC official sign provides at bank branch teller windows to the digital channels through which depositors are increasingly handling their banking needs.”
Since the 1930s, the black and gold FDIC official sign (shown below) displayed at bank branch teller windows has given bank customers confidence that their deposited funds are safe. Depositors and consumers today have a variety of options for where they can deposit their money and how they can access banking products and services. The revisions in the final rule extend the certainty and confidence associated with the FDIC official sign to digital channels, such as bank websites and mobile applications, through which depositors are increasingly handling their banking needs.
FDIC Official Physical Sign:
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The final rule establishes a new black and navy blue FDIC official digital sign (shown below). Beginning in 2025, banks will be required to display the FDIC official digital sign near the name of the bank on all bank websites and mobile applications. Banks also will be required to display the FDIC official digital sign on certain automated teller machines.
FDIC Official Digital Sign:
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In addition, the final rule modernizes requirements for display of the FDIC official sign in bank branches and other physical premises to account for evolving designs of bank branches and other physical bank locations where customers make deposits.
The final rule also requires the use of signs to differentiate insured deposits from non–deposit products across banking channels and to indicate that certain financial products “are not insured by the FDIC, are not deposits, and may lose value.”
The final rule clarifies the FDIC’s regulations regarding misrepresentations of deposit insurance coverage by addressing specific scenarios where a person, including a non–bank entity, provides information to consumers that may be misleading, confuse consumers as to whether they are doing business with a bank, and whether their funds are protected by deposit insurance. For example, the final rule clarifies that FDIC–associated terms or images may not be used in marketing and advertising materials to inaccurately imply or represent that any uninsured financial product or non–bank entity is insured or guaranteed by the FDIC.
The final rule complements the FDIC’s recently launched “ Know your Risk. Protect your Money. ” public awareness campaign, which is aimed at helping consumers better understand deposit insurance and how it protects their money.
The amendments made by the final rule will take effect on April 1, 2024, with an extended compliance date of January 1, 2025.
Last Updated: December 20, 2023
FAQs
Physical spaces. The rule amends Part 328 to update sign requirements in a bank's physical premises, including that banks must continuously, clearly, and conspicuously display the FDIC's official sign at each place of business where consumers can transact with deposits, including branches.
Is the FDIC's official advertising statement not required on? ›
When can't I use the Official Advertising Statement? The FDIC prohibits use of the Official Advertising Statement when advertising non-deposit products, such as insurance products or annuities.
What are the rules for FDIC advertising? ›
The FDIC's official sign and advertising statement regulations require IDIs to continuously display the FDIC official sign where insured deposits are usually and normally received in the bank's principal place of business and at all of its branches and to use an official advertising statement, such as “Member FDIC,” ...
What are the new FDIC rules for 2024? ›
IMPORTANT: As of April 1, 2024, the maximum insurance coverage for a trust owner with five or more beneficiaries is $1,250,000 per owner. This coverage change applies to both existing and new trust accounts, including CDs (regardless of maturity date).
What is considered an advertisem*nt by Reg Z advertising rules? ›
- Regulation Z—An advertisem*nt is a commercial message in any medium. - MAP Ad Rule—A commercial communication is a statement designed to effect a sale or create an interest in purchasing goods or services appearing in various formats, including the Internet or any other medium.
What is the FDIC definition of advertisem*nt? ›
The term “advertisem*nt,” as used in this subpart, shall mean a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business.
Are ads legally enforceable? ›
Advertisem*nts are typically considered as invitations to treat rather than contracts. However, advertisem*nts can transform into contracts if they meet specific criteria, including having clearly defined terms and demonstrating the intent to form a legally binding agreement.
Is it illegal to not say #ad? ›
Some flexibility is, however, afforded — the law does not mandate a font size, color or specific placement. Nevertheless, disclosure is still required even in the shortest form of social media. On twitter, for example, include #ad in a tweet or “Ad:” at the beginning of your tweet.
What is the difference between member FDIC and FDIC insured? ›
I think customer might be confused between FDIC member bank (FDIC insured) and Federal Reserve non-member bank (nothing to do with FDIC or with insurance). The FDIC's own advertising regulations specify that an FDIC insured bank can use the phrase "Member FDIC" in ads to indicate that deposits are insured.
What are 3 things not insured by FDIC? ›
The FDIC does not insure:
- Stock Investments.
- Bond Investments.
- Mutual Funds.
- Crypto Assets.
- Life Insurance Policies.
- Annuities.
- Municipal Securities.
- Safe Deposit Boxes or their contents.
The FDIC's official sign and advertising statement regulations currently require banks to continuously display the official sign where insured deposits are usually and normally received in the bank's principal place of business and at all of its branches, and to use an official advertising statement, such as “Member ...
What is not protected by FDIC? ›
Many people use investment products to help buy a home, send children to college, or build a retirement nest egg. But unlike traditional checking or savings accounts, non-deposit investment products are not insured by the FDIC, even if they were purchased from an FDIC-insured bank.
Is it safe to have more than $250000 in a bank account? ›
An account that contains more than $250,000 at one bank, or multiple accounts with the same owner or owners, is insured only up to $250,000. The protection does not come from taxes or congressional funding. Instead, banks pay into the insurance system, and the insurance provides their customers with protection.
Where do millionaires keep their money if banks only insure 250k? ›
Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.
Can the FDIC shut down banks? ›
As 60 Minutes reported in 2009, there are three ways the FDIC can take over a bank: It can close it and pay off depositors; run the bank itself; or try to find a buyer.
What is Section 328 of the 12 CFR? ›
§ 328.0 Scope. Part 328 describes the official sign of the FDIC and prescribes its use by insured depository institutions. It also prescribes the official advertising statement insured depository institutions must include in their advertisem*nts.
What are the main requirements of Regulation Z governing advertising of closed end credit? ›
Regulation Z restricts how rates can be included in advertisem*nts for closed-end credit. The APR must always be listed (and must state that the APR is subject to increase after consummation, if applicable). The interest rate may also be listed but not more conspicuously than the APR.
Which law outlines basic rules for advertising and marketing in the United States? ›
The Federal Trade Commission Act, signed into law by President Woodrow Wilson on September 26, 1914, allows the Federal Trade Commission (FTC) to act in the interest of consumers to prevent deceptive and unfair acts or practices: Advertising must tell the truth and not mislead consumers.
What types of advertising fall under the Oklahoma Real Estate Commission's Rules and Regulations? ›
Oklahoma's real estate advertising rules apply to real estate advertising done in any medium. All Oklahoma real estate advertising must be a truthful, forthcoming and accurate representation of the property or services being offered.
