How Paxnova Trust operates, in writing.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects depositors of insured banks against the loss of their deposits if the bank fails. The FDIC is backed by the full faith and credit of the United States government. No depositor has ever lost a penny of insured funds as a result of a bank failure since the FDIC was established in 1933.

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. This means a single individual can be insured for substantially more than $250,000 at one bank by using multiple ownership categories (see Section 4 below).

FDIC deposit insurance covers all types of deposits, including:

• Checking accounts (Apex Checking and business operating accounts)
• Savings accounts (Reserve High-Yield Savings and business savings)
• Money market deposit accounts
• Certificates of Deposit (CDs)
• Negotiable Order of Withdrawal (NOW) accounts
• Cashier's checks, money orders, and other official bank items issued by us

The FDIC does not insure non-deposit investment products, even when offered through an insured bank. Specifically:

• Stocks, bonds, mutual funds, and ETFs
• Brokerage and managed-portfolio assets at Paxnova Trust Wealth Advisors LLC (these are protected by SIPC, not FDIC)
• Annuities, life insurance, and crypto-asset positions
• Safe-deposit-box contents
• U.S. Treasury bills, notes, and bonds (these are backed directly by the U.S. government but are not FDIC-insured)
• Cryptocurrency, NFTs, and digital-asset products

The FDIC provides $250,000 of coverage per ownership category. A single person can be insured for far more than $250,000 at a single bank by spreading deposits across multiple categories. The most common categories at Paxnova Trust are:

• Single accounts — owned by one person, $250,000 of coverage
• Joint accounts — owned by two or more people, $250,000 per co-owner ($500,000 for a two-person joint account)
• Certain retirement accounts (IRAs) — $250,000 of coverage, separate from non-retirement deposits at the same bank
• Revocable trust accounts (POD/Totten) — $250,000 per unique beneficiary, up to five beneficiaries
• Irrevocable trust accounts — $250,000 per unique beneficiary
• Employee Benefit Plan accounts — coverage on a pass-through basis to each participant's non-contingent interest
• Corporation, partnership, and unincorporated association accounts — $250,000 per entity
• Government accounts — coverage by category under 12 CFR § 330.15

You can increase your protection by:

• Adding a joint owner — a two-person joint account is insured to $500,000
• Naming a beneficiary on a revocable trust (POD/ITF) — adds $250,000 per beneficiary, up to five
• Opening an IRA in addition to a checking/savings account — the IRA has its own $250,000
• Spreading deposits across multiple FDIC-insured banks (Paxnova Trust offers a sweep program that allocates excess deposits to network banks for additional FDIC coverage — see your Account Agreement)

The FDIC's free Electronic Deposit Insurance Estimator (EDIE) at edie.fdic.gov will calculate your exact coverage in under a minute. Our private bankers will also walk through it with you on request.

To qualify as a joint account for FDIC purposes, all of the following must be true: (1) all co-owners are living natural persons; (2) all co-owners have equal withdrawal rights; and (3) all co-owners have signed the account signature card (or the bank's electronic equivalent at opening). Each co-owner is insured up to $250,000 for all joint accounts at the same bank combined.

Deposit-based Traditional, Roth, Rollover, SEP, and SIMPLE IRAs at Paxnova Trust are aggregated and insured up to $250,000 — separate from your non-retirement deposits. Retirement assets invested in mutual funds, ETFs, or other securities (even when held in an IRA) are not FDIC-insured; they are protected by SIPC.

Corporation, partnership, LLC, and unincorporated association deposits are insured up to $250,000 per legal entity, per bank. Sole-proprietorships are insured under the owner's Single Account category. Nonprofit accounts qualify on a pass-through basis to the named beneficiaries where the deposit-broker rules permit.

If an FDIC-insured bank fails, the FDIC pays insured deposits as quickly as possible — usually by the next business day. Funds are paid by check, by transfer to an account at a successor bank, or by opening a new account at another insured bank. Uninsured amounts are paid as dividends from the recovered assets of the failed bank, on a pro-rata basis.

The FDIC official sign — “Member FDIC” — appears in our branch lobbies, on our ATMs, on the homepage of our website, in our mobile app sign-in screen, and on disclosures for deposit products. As required by 12 CFR Part 328, we never imply that non-deposit investment products are FDIC-insured. When deposit and non-deposit products appear together, we clearly distinguish them.

• FDIC Consumer Hotline: 1-877-ASK-FDIC (1-877-275-3342)
• Online: fdic.gov · edie.fdic.gov
• Mail: FDIC, Attention: Consumer Response Center, 1100 Walnut St., Box #11, Kansas City, MO 64106
• Paxnova Trust Customer Service: 1-800-PAXNOVA-1 — ask for the Deposit Insurance Help desk for a free coverage review