Are condo & HOA bank deposits fully insured by Uncle Sam? - Loop North News:
The answer is more complicated than you might think. Are the association's funds in an account in its own name? Or are they commingled in one big account in the name of the management company, that is way over the dollar limit on federal depository insurance? If so, “If the management company is complying with the FDIC’s rules for pass-through deposit insurance coverage, then each HOA the company is holding funds for in the commingled account would have up to $250,000 of deposit insurance coverage at that bank,” explained the FDIC memorandum.
But what if they are not complying with those rules for pass-through deposit insurance coverage?