# FDIC FIL-56-2024: Questions and Answers Regarding FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo

> Federal · Agency guidance · Superseded

URL: https://www.frixlaw.com/law-library/statutes/FDIC_FIL24056

## Section

- **Citation:** FDIC FIL-56-2024
- **Heading:** Questions and Answers Regarding FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** Superseded
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** FDIC Financial Institution Letters / Questions and Answers Regarding FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo

## Text

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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 328
RIN 3064-AF26
FDIC Official Signs and Advertising Requirements, False Advertising,
Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Final rule.
SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is amending its
regulations governing use of the official FDIC sign and insured depository institutions’
(IDIs) advertising statements to reflect how depositors conduct business with IDIs today,
including through digital and mobile channels. The final rule also clarifies the FDIC’s
regulations regarding misrepresentations of deposit insurance coverage by addressing
specific scenarios where consumers may be misled as to whether they are conducting
business with an IDI and whether their funds are protected by federal deposit insurance.
The final rule is intended to enable consumers to better understand when they are
conducting business with an IDI and when their funds are protected by the FDIC’s
deposit insurance coverage.
DATES: The amendments made by the final rule are effective on April 1, 2024; with an
extended compliance date of January 1, 2025.
FOR FURTHER INFORMATION CONTACT: Division of Depositor and Consumer
Protection: Luke H. Brown, Associate Director, 202-898-3842, LuBrown@FDIC.gov;
Meron Wondwosen, Chief, Supervisory Policy, 202-898-7211,
MeWondwosen@FDIC.gov; Edward J. Hof, Senior Policy Analyst, 202-898-7213,
dments made by the final rule are effective on April 1, 2024; with an
extended compliance date of January 1, 2025.
FOR FURTHER INFORMATION CONTACT: Division of Depositor and Consumer
Protection: Luke H. Brown, Associate Director, 202-898-3842, LuBrown@FDIC.gov;
Meron Wondwosen, Chief, Supervisory Policy, 202-898-7211,
MeWondwosen@FDIC.gov; Edward J. Hof, Senior Policy Analyst, 202-898-7213,

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EdwHof@FDIC.gov. Legal Division: Vivek Khare, Counsel, 202-898-6847,
VKhare@fdic.gov; James Watts, Counsel, 202-898-6678, JWatts@FDIC.gov; Chantal
Hernandez, Senior Attorney, 202-898-7388, ChHernandez@fdic.gov.
SUPPLEMENTARY INFORMATION:
The FDIC is amending part 328 of its regulations, which includes requirements
for use of the official FDIC sign and IDIs’ advertising statements, as well as
misrepresentations of insured status and misuse of the FDIC’s name or logo. The final
rule generally: (1) modernizes and amends the rules governing the display of the official
sign in branches to also, for example, apply the rules to IDIs’ physical premises with
different layouts and designs where consumers have access to or transact with deposits;
(2) establishes and requires the display of the FDIC official digital sign on bank websites,
mobile applications, and certain IDI automated teller machines (ATMs) and other like
devices; (3) requires the use of disclosures differentiating deposits and non-deposit
products across all banking channels, including digital channels; (4) clarifies the FDIC’s
rules regarding misrepresentations of deposit insurance coverage by addressing specific
scenarios where information provided to consumers may be misleading; (5) amends the
definition of “non-deposit product” to include crypto-assets and specifically address safe
deposit box services; and (6) requires IDIs to establish and maintain written policies and
procedures addressing compliance with part 328
s regarding misrepresentations of deposit insurance coverage by addressing specific
scenarios where information provided to consumers may be misleading; (5) amends the
definition of “non-deposit product” to include crypto-assets and specifically address safe
deposit box services; and (6) requires IDIs to establish and maintain written policies and
procedures addressing compliance with part 328. As explained below, the final rule is
intended to enable consumers to better understand when they are conducting business
with an IDI and when their funds are protected by the FDIC’s deposit insurance
coverage.
A. Policy Objectives

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The banking landscape has significantly changed since 2006, when the FDIC last
updated its regulation on the official sign and advertising statement. For example,
consumers are increasingly relying on internet and mobile banking channels to access IDI
banking services, bank branches are continually evolving to serve depositors, and
financial technology (fintech) companies are offering consumers new options and
alternatives for accessing banking products and services. While these developments are
beneficial, they may make it more difficult for depositors and consumers to understand
when they are conducting business with an IDI and when their funds are protected by
FDIC deposit insurance. In addition, the FDIC has observed an increase in misleading
representations about deposit insurance on the internet, which can result in consumer
confusion and harm. These types of misleading statements create uncertainty and could
dilute and undermine the confidence that underpins banks and our nation’s broader
financial system.
To address ongoing market and technological developments, the amendments to
part 328 are intended to achieve several policy goals
ntations about deposit insurance on the internet, which can result in consumer
confusion and harm. These types of misleading statements create uncertainty and could
dilute and undermine the confidence that underpins banks and our nation’s broader
financial system.
To address ongoing market and technological developments, the amendments to
part 328 are intended to achieve several policy goals. Specifically, the FDIC intends to
bring the certainty and confidence historically provided by the FDIC official sign found
at banks’ teller windows to IDI digital channels through which depositors are
increasingly handling their banking needs today. These channels serve as the digital
teller windows of the modern banking landscape, and it is critical that these channels
provide clear, consistent, and accurate information about deposit insurance upon which
consumers, businesses, and other entities may base their financial decisions.
The final rule establishes sign requirements across all banking channels, including
evolving digital channels, to better align with how depositors conduct business with IDIs

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today. The sign requirements are also intended to more clearly distinguish insured
deposits from non-deposit products (which are not insured) and to help consumers
distinguish IDIs from non-banks in the digital age. The final rule allows consumers,
businesses, and other entities to better understand when their funds are protected by
FDICs deposit insurance, and when they may not be insured. At the same time, the sign
requirements are intended to permit flexibility for IDIs and other firms in the marketing
of their products and services.
The amendments to the FDIC’s rules regarding misrepresentations of deposit
insurance coverage are intended to address specific scenarios where information provided
to consumers may be misleading with respect to deposit insurance coverage
nsured. At the same time, the sign
requirements are intended to permit flexibility for IDIs and other firms in the marketing
of their products and services.
The amendments to the FDIC’s rules regarding misrepresentations of deposit
insurance coverage are intended to address specific scenarios where information provided
to consumers may be misleading with respect to deposit insurance coverage. In
particular, the FDIC is concerned that certain business relationships between IDIs and
non-banks may be confusing to many consumers. Consequently, the final rule requires
clear disclosures that will better inform consumers as to when their funds are protected by
FDIC deposit insurance. Further clarity in this area will be beneficial for both consumers
and the industry.
B. Background
The FDIC is an independent federal agency and its mission is to maintain stability
and public confidence in the nation’s financial system by, among other things, insuring
deposits at all IDIs. Today, there are about 4,654 IDIs in the United States.1 Since 1933,
the FDIC has taken action in accordance with its mission to restore public confidence in
the banking system in times of financial turmoil, including the severe financial crisis of
2008 to 2013, during the financial stress associated with the coronavirus disease 2019

1 Call Reports as of June 30, 2023.

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(COVID-19) pandemic, and, most recently, when large regional banks failed in the first
half of 2023. The FDIC has proactively sought to protect depositors and consumers,2
promote public confidence in insured deposits, and prevent false and misleading
representations about the manner and extent of FDIC deposit insurance
1 Call Reports as of June 30, 2023.

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(COVID-19) pandemic, and, most recently, when large regional banks failed in the first
half of 2023. The FDIC has proactively sought to protect depositors and consumers,2
promote public confidence in insured deposits, and prevent false and misleading
representations about the manner and extent of FDIC deposit insurance. Statutory
Authority and Regulations
Sign and advertising statement requirements for IDIs date back to the Banking
Act of 1935 and are now set forth in section 18(a) of the Federal Deposit Insurance Act
(FDI Act).3 Section 18(a) grants the FDIC authority to prescribe regulations with respect
to these requirements, which are currently contained in subpart A to 12 CFR part 328.4
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,” when advertising
deposit products and services, with few exceptions.5 The FDIC last made major
amendments to these regulations in 2006.6 The 2006 amendments refer to an IDI’s
physical premises and “Remote Service Facilities” but do not specify other banking
channels that have since evolved, such as digital banking channels.7

2 As used in this document, the term “consumer” means any current or potential depositor, including
natural persons, organizations, corporate entities, and governmental bodies. See 12 CFR 328.101.
3 12 U.S.C. 1828(a)(1). Section 9 of the FDI Act provides the FDIC with the authority to prescribe rules
and regulations as it may deem necessary to carry out the provisions of this Act or of any other law which it
has the responsibility of administering or enforcing. 12 U.S.C. 1819(a) Tenth
ng
natural persons, organizations, corporate entities, and governmental bodies. See 12 CFR 328.101.
3 12 U.S.C. 1828(a)(1). Section 9 of the FDI Act provides the FDIC with the authority to prescribe rules
and regulations as it may deem necessary to carry out the provisions of this Act or of any other law which it
has the responsibility of administering or enforcing. 12 U.S.C. 1819(a) Tenth.
4 See subpart A to 12 CFR part 328 (§§ 328.0 through 328.5-328.99).
5 See generally, 12 CFR part 328.
6 71 FR 66098 (Nov. 13, 2006).
7 See 12 CFR 328.2. “Remote Service Facility” includes any automated teller machine, cash dispensing
machine, point-of-sale terminal, or other remote electronic facility where deposits are received. 12 CFR
328.2(a)(1)(ii).

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Section 18(a)(4) of the FDI Act prohibits any person from misusing the name or
logo of the FDIC or from engaging in false advertising or making knowing
misrepresentations about deposit insurance.8 The FDIC has broad statutory authority in
this area and, in May 2022, issued specific regulations in subpart B to 12 CFR part 328
regarding false representations related to FDIC insurance and the misuse of the FDIC
name and logo.9
Developments in Consumer Access to Banking and Financial Services
In recent years, there have been significant changes in the provision of banking
products and services, including the widespread use of digital banking channels as a
critical and fundamental mechanism to access banking and financial services, the
evolution of bank branches’ role in serving consumers, and an increasingly broad array of
financial products offered through banking channels, including access to non-deposit
products. The following overview of these trends is intended to provide context for the
final rule, which seeks to enable consumers to better understand when they are
conducting business with an IDI and when their funds are protected by the FDIC’s
deposit insurance coverage
and an increasingly broad array of
financial products offered through banking channels, including access to non-deposit
products. The following overview of these trends is intended to provide context for the
final rule, which seeks to enable consumers to better understand when they are
conducting business with an IDI and when their funds are protected by the FDIC’s
deposit insurance coverage.
Many bank branches retain a traditional physical branch footprint, serving
depositors primarily at teller windows or stations. According to the FDIC’s 2021

8 12 U.S.C. 1828(a)(4). Section 18(a)(4) also provides the FDIC independent authority to investigate and
take administrative enforcement actions, including the power to issue cease and desist orders and impose
civil money penalties, against any person who misuses the FDIC name or logo or makes misrepresentations
about deposit insurance. 12 U.S.C. 1828(a)(4)(C)-(D). Furthermore, under Federal law, it is a criminal
offense to misuse the FDIC name or make false representations regarding deposit insurance. See 18 U.S.C.
709.
9 87 FR 33415 (June 2, 2022); Subpart B to 12 CFR part 328 (§§ 328.100 through 328.109). Subpart B
establishes the process by which the FDIC identifies and investigates conduct that may violate section
18(a)(4), the standards under which such conduct is evaluated, and the procedures the FDIC follows when
formally and informally enforcing the provisions of section 18(a)(4).
e 18 U.S.C.
709.
9 87 FR 33415 (June 2, 2022); Subpart B to 12 CFR part 328 (§§ 328.100 through 328.109). Subpart B
establishes the process by which the FDIC identifies and investigates conduct that may violate section
18(a)(4), the standards under which such conduct is evaluated, and the procedures the FDIC follows when
formally and informally enforcing the provisions of section 18(a)(4).

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National Survey of Unbanked and Underbanked Households (Household Survey),
roughly 63.4 percent of all banked households used a bank teller to access their accounts
at least once in the last 12 months, including 57.8 percent of the youngest banked
households between the ages of 15 to 24, and 72.2 percent of the oldest banked
households aged 65 or older.10 However, IDIs have increasingly begun operating
physical premises with different layouts and designs. These locations may include
electronically-staffed kiosks, interactive ATMs that provide remote assistance with a
teller, and teller-less cafés with internet access where deposits can be accepted on tablets
or through ATMs. The FDIC’s long-standing sign rules, focused on display of the
official sign at teller windows or stations, need to be updated to reflect these market
changes and the way banks and consumers conduct business.
The FDIC’s long-standing sign rules also do not reflect the digital banking
services now offered, such as online banking and mobile banking. For example, digital
banking channels enable banks to receive customer deposits through remote deposit
capture. For consumers that use these channels to make deposits, an IDI’s ATM,
website, or mobile application effectively serves as a digital teller window
DIC’s long-standing sign rules also do not reflect the digital banking
services now offered, such as online banking and mobile banking. For example, digital
banking channels enable banks to receive customer deposits through remote deposit
capture. For consumers that use these channels to make deposits, an IDI’s ATM,
website, or mobile application effectively serves as a digital teller window. The results of
the Household Survey show that the proportion of banked households that used mobile
banking as their primary method of bank account access increased from 34.0 percent in
2019 to 43.5 percent in 2021.11 The proportion of banked households that used online
banking as their primary method of bank account access was similar in 2019 (22.8

10 Federal Deposit Insurance Corporation (FDIC), 2021 National Survey of Unbanked and Underbanked
Households (October 2022), https://www.fdic.gov/analysis/household-survey/2021report.pdf.
11 Id. at 25.

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percent) and 2021 (22.0 percent).12 Combined, 65.4 percent of banked households in
2021 used mobile or online banking as their primary method of bank account access, up
from 56.8 percent in 2019.13 Given that nearly two-thirds of banked households
primarily access banking products through phones, computers, and other devices, the
FDIC believes it is critical to update its rules and provide consistent sign requirements for
digital channels.
Banking customers are also offered an increasingly wide array of financial
products and services, regardless of whether they are in a branch, using an ATM, or
connecting with an IDI through digital channels. In many instances, IDIs offer both
deposits and non-deposit products to consumers. For example, IDIs might allow
depositors in their branches to consult with an investment adviser and purchase securities
or mutual funds
an increasingly wide array of financial
products and services, regardless of whether they are in a branch, using an ATM, or
connecting with an IDI through digital channels. In many instances, IDIs offer both
deposits and non-deposit products to consumers. For example, IDIs might allow
depositors in their branches to consult with an investment adviser and purchase securities
or mutual funds. Options to purchase non-deposit products are continuing to evolve, with
some IDIs offering ATM or digital banking customers the ability to purchase crypto-
assets with their funds. In some cases, an IDI may provide its customers who initially
access the IDI’s website, ATM, or banking application the ability to purchase non-deposit
products from a third party. Absent adequate signs or disclosures, simultaneous offering
of both insured deposits and non-deposit products may lead bank customers (who are
aware that the IDI is insured by the FDIC) to mistakenly conclude that all of the financial
products being offered through their bank’s website or application are FDIC-insured.
Growth in the number of fintech companies has also blurred the distinction
between IDIs and non-banks in the eyes of many consumers, increasing the potential for
confusion regarding deposit insurance coverage. Business arrangements between IDIs

12 Id.
13 Id.

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and non-banks, including fintech companies, can take many forms and continue to evolve
at a rapid pace. In some cases, such business arrangements can present the risk of
consumer confusion. For example, an IDI and a fintech company might enter into an
arrangement where the fintech company offers the IDI’s deposit products and services to
the fintech company’s customers. In other instances, fintech companies might deposit
their customers’ funds at an IDI
nd continue to evolve
at a rapid pace. In some cases, such business arrangements can present the risk of
consumer confusion. For example, an IDI and a fintech company might enter into an
arrangement where the fintech company offers the IDI’s deposit products and services to
the fintech company’s customers. In other instances, fintech companies might deposit
their customers’ funds at an IDI. In such cases, the fintech company might represent to
its customers that the customers’ funds are FDIC-insured, or that they are insured by the
FDIC on a “pass-through” basis, without noting that it is subject to certain conditions.
The substantial increase in the number and types of arrangements and the various
representations that companies are making regarding deposit insurance coverage may
confuse many consumers. For example, inadequate disclosures may result in consumers
not understanding whether they are dealing with an IDI, and whether their funds are
insured by the FDIC.
Industry Outreach - Request for Information
In February 2020 and April 2021, the FDIC published Requests for Information
(collectively, the RFIs) in the Federal Register to seek public input regarding potential
modernization of the official sign and advertising rules to reflect changes in deposit-
taking via physical branch, digital, and mobile banking channels.14 In response to the
RFIs, the FDIC received 20 comments from trade associations, IDIs, and others.15 In
addition, FDIC staff met with representatives from IDIs, a technology service provider,

14 85 FR 18528 (Feb. 26, 2020); 86 FR 18528 (Apr. 9, 2021)
reflect changes in deposit-
taking via physical branch, digital, and mobile banking channels.14 In response to the
RFIs, the FDIC received 20 comments from trade associations, IDIs, and others.15 In
addition, FDIC staff met with representatives from IDIs, a technology service provider,

14 85 FR 18528 (Feb. 26, 2020); 86 FR 18528 (Apr. 9, 2021).
15 Comments to the RFIs can be found on the FDIC’s website, available at:
https://www.fdic.gov/resources/regulations/federal-register-publications/2020/2020-rfi-fdic-sign-and-
advertising-requirements-3064-za14.html and https://www.fdic.gov/resources/regulations/federal-register-
publications/2021/2021-rfi-fdic-official-sign-and-advertising-requirements-3064-za14.html.

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and consumer groups. Commenters generally recognized the importance and value of
displaying FDIC signs and the advertising statement, and some commenters stressed that
depositors place significant trust in FDIC signs. A summary of these comments was
provided in the December 2022 Notice of Proposed Rulemaking (NPR or proposal) and
the comments were considered as part of this rulemaking process.16
Previous Rulemaking
On May 17, 2022, the FDIC issued a final rule adding a new subpart B to 12 CFR
part 328.17 The final rule describes: (1) the process by which the FDIC will identify and
investigate conduct that may violate the prohibitions against misuse and
misrepresentation; (2) the standards under which such conduct will be evaluated; and (3)
the procedures that the FDIC will follow when formally and informally enforcing these
prohibitions. While this rulemaking was an important step, the FDIC has observed an
increase in the number of instances where financial services providers or other entities or
individuals have misused the FDIC’s name or logo or have made misrepresentations
about FDIC insurance
uct will be evaluated; and (3)
the procedures that the FDIC will follow when formally and informally enforcing these
prohibitions. While this rulemaking was an important step, the FDIC has observed an
increase in the number of instances where financial services providers or other entities or
individuals have misused the FDIC’s name or logo or have made misrepresentations
about FDIC insurance. Although the FDIC demanded that these non-banks cease and
desist from making false and misleading statements, such actions by non-banks caused
continuing challenges for consumers in determining whether they are conducting
business with an IDI and whether their funds are protected by the FDIC’s deposit
insurance coverage.18 This final rule will provide further clarification of subpart B to
address these challenges, particularly to address specific situations where consumers may

16 87 FR 78017, 78020 (Dec. 21, 2022).
17 87 FR 33415 (June 2, 2022).
18 A public list of FDIC cease and desist letters related to violations of section 18(a)(4) of the FDI Act can
be found on the FDIC’s website, available at: https://www.fdic.gov/resources/regulations/laws/section-
18a4-of-fdi-act/.

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be misled as to whether an entity is insured by the FDIC or as to the nature and extent of
deposit insurance coverage.
December 2022 Proposal and Comments
On December 13, 2022, the FDIC Board approved an NPR on the FDIC’s sign
and advertising requirements, rules on misrepresentation of insured status, and misuse of
the FDIC’s name or logo. The FDIC sought to obtain input from the public for these
proposed regulations in light of significant changes to bank branches and their role in
serving consumers, the proliferation of digital channels as a critical and fundamental
mechanism to access banking and financial services, and an increasingly broad array of
financial products offered through banking channels, including access to non-deposit
products
obtain input from the public for these
proposed regulations in light of significant changes to bank branches and their role in
serving consumers, the proliferation of digital channels as a critical and fundamental
mechanism to access banking and financial services, and an increasingly broad array of
financial products offered through banking channels, including access to non-deposit
products.
Specifically, the FDIC’s proposal aimed to modernize its sign and advertising
requirements to reflect current banking practices, like deposit-taking via physical
branches and similar locations, digital banking channels, and ATMs. The proposal
included three distinct signs relating to deposit insurance. The first pertained to the
official sign displayed at IDIs’ principal places of business. The NPR proposed to
modernize the requirements relating to display of the official sign to reflect developments
in the marketplace. The second was for a new digital official sign that IDIs would be
required to display on their digital deposit-taking channels, such as online banking
websites, mobile applications, and ATMs. Third, the FDIC proposed requiring IDIs to
display a non-deposit products sign indicating that such products: are not insured by the
FDIC; are not deposits; and may lose value (where the IDI offers both insured and
uninsured, non-deposit products through the same channel) in order to address potential
al deposit-taking channels, such as online banking
websites, mobile applications, and ATMs. Third, the FDIC proposed requiring IDIs to
display a non-deposit products sign indicating that such products: are not insured by the
FDIC; are not deposits; and may lose value (where the IDI offers both insured and
uninsured, non-deposit products through the same channel) in order to address potential

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customer confusion regarding a product’s insured status. The FDIC also proposed
limited amendments to its official advertising statement requirements to provide IDIs
with an additional option for a shortened official advertising statement. Finally, the
proposal included clarifications for the application of the misrepresentation statute in
specific situations where consumers may misunderstand or be misled as to whether an
entity is insured by the FDIC or the nature and extent of deposit insurance coverage.
The NPR solicited comments on all aspects of the proposed rule. The comment
period ended on April 7, 2023. The FDIC received 17 substantive comments from
financial institutions, industry groups, consumer organizations, investor advocacy groups,
crypto-asset/blockchain groups, deposit networks, and third-party vendors.19
A number of comments were supportive of the proposal. More specifically,
several comments supported the FDIC’s efforts to modernize its rules in light of changes
and innovation in the marketplace and to provide further clarity through deposit insurance
signage and advertisement requirements. Several comments also supported the FDIC’s
efforts to ensure consumers fully understand the insured status of products offered by
financial institutions. One commenter provided that the confusion over new and complex
financial products could undermine public confidence in the safety and reliability of the
mainstream banking system.
A number of commenters expressed a desire for more flexibility regarding the
proposed signage and disclosure requirements
sumers fully understand the insured status of products offered by
financial institutions. One commenter provided that the confusion over new and complex
financial products could undermine public confidence in the safety and reliability of the
mainstream banking system.
A number of commenters expressed a desire for more flexibility regarding the
proposed signage and disclosure requirements. Some commenters advocated for
increased flexibility in the placement of both physical and digital signage, noting the

19 Comments can be accessed at: https://www.fdic.gov/resources/regulations/federal-register-
publications/2022/2022-fdic-official-sign-advertising-requirements-3064-af26.html. In response to a
comment letter, the FDIC extended the comment period by 45 days to provide additional opportunity for
the public to prepare comments to address the matters raised by the NPR.

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costs entailed to comply with the proposed rule’s requirements.
Several financial institutions provided that the proposed rule focused on
community banks instead of non-banks that falsify their insured status, and noted that
banks already take affirmative steps to inform their customers about deposit insurance
coverage. However, other commenters commended the FDIC’s effort to improve clarity
for customers regarding deposit insurance coverage and reduce customer confusion,
given the rise of various banking services offered by the third parties.
Some comments advocated for stronger measures to address deposit insurance
misrepresentations. Specifically, a commenter suggested that FDIC should expressly
prohibit comparing an uninsured financial product to an insured product without clearly
and conspicuously noting the difference between insured and uninsured status.
Commenters also expressed views on an appropriate effective date for the rule.
One commenter recommended a minimum 18-month implementation period before the
final rule becomes effective
menter suggested that FDIC should expressly
prohibit comparing an uninsured financial product to an insured product without clearly
and conspicuously noting the difference between insured and uninsured status.
Commenters also expressed views on an appropriate effective date for the rule.
One commenter recommended a minimum 18-month implementation period before the
final rule becomes effective. Another commenter requested that the requirements related
to the digital sign be made effective after the industry has at least one year to comply.
C. Final Rule and Discussion of Comments
The FDIC has reviewed and carefully considered public comments received and
is generally finalizing the rule as proposed, with some changes and clarifications, as
described below. The amendments made by this final rule will take effect on April 1,
2024. However, full compliance with the amendments made by this final rule is extended
to January 1, 2025. The extended compliance date is intended to provide sufficient time
for financial institutions to put in place processes, systems and technological updates to
implement the new regulatory requirements described below.

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1. FDIC Official Sign
The FDIC did not receive comments on its official sign and will continue to use
the existing design of the official sign, which, in addition to prominently bearing the
name of the FDIC, includes statements indicating that each depositor is insured up to at
least $250,000 and that the FDIC’s deposit insurance is backed by the full faith and credit
of the United States government. In the proposed rule, the FDIC moved the reference to
the display of the official sign to proposed § 328.3, including the language that the
official sign must be in a size of 7″ by 3″ or larger with black lettering on a gold
background. After further consideration, the FDIC is including the official sign size and
color requirements as part of the official sign description under § 328.2 for ease of
reference under the final rule
the reference to
the display of the official sign to proposed § 328.3, including the language that the
official sign must be in a size of 7″ by 3″ or larger with black lettering on a gold
background. After further consideration, the FDIC is including the official sign size and
color requirements as part of the official sign description under § 328.2 for ease of
reference under the final rule. The FDIC also continues to reference this language in the
requirements for display of the official sign in § 328.3 under the final rule.
2. Sign Requirements on IDIs’ Physical Premises
Official sign in an IDI’s physical premises
Proposed Rule
Section 18(a) of the FDI Act requires all IDIs to display at each place of business
a sign or signs relating to the insurance of the deposits of the institution. The FDIC
proposed updated signage requirements in § 328.3 to govern signage within an IDI’s
premises. The proposed rule would have continued to require all IDIs to continuously,
clearly, and conspicuously display the official sign in their principal place of business and
all their U.S. branches.20 To accommodate evolving styles and footprints of branches,
the proposed rule also would have required IDIs to display the FDIC official sign in any

20 As stated in the NPR, the term “branch” would be defined by reference to the FDI Act’s definition of
“domestic branch,” 12 U.S.C. 1813(o).
al place of business and
all their U.S. branches.20 To accommodate evolving styles and footprints of branches,
the proposed rule also would have required IDIs to display the FDIC official sign in any

20 As stated in the NPR, the term “branch” would be defined by reference to the FDI Act’s definition of
“domestic branch,” 12 U.S.C. 1813(o).

15

physical location where IDIs receive deposits other than teller windows or stations
(referred to as “non-traditional branches” in the preamble to the proposed rule).
Discussion of Comments
One commenter suggested that the FDIC eliminate references to “non-traditional
branches” and stated that non-branch locations should not be subject to the proposed
rule’s sign requirement. The commenter further stated that the proposed rule’s
requirements for physical premises would apply only to banks’ principal place of
business and branches. The commenter expressed concerns that the term “non-traditional
branch” could be over-inclusive and include non-branch locations, like deposit
production offices.
Final Rule
The FDIC is revising § 328.3(b) to now require that:
Each insured depository institution must continuously, clearly, and conspicuously
display the official sign at each place of business where consumers have access to
or transact with deposits, including all of its branches (except branches excluded
from the scope of this subpart under § 328.0) and other premises in the manner
described in this paragraph (b).21
This requirement is consistent with section 18(a) of the FDI Act, which provides
the FDIC authority to prescribe regulations for IDIs to display at each place of business a
sign or signs relating to the insurance of deposits of the institution.22
With respect to the comment that requested the FDIC not use the term “non-
traditional branches,” the FDIC did not intend to affect how the term “branch” is defined

21 Final 12 CFR 328.3(b
C authority to prescribe regulations for IDIs to display at each place of business a
sign or signs relating to the insurance of deposits of the institution.22
With respect to the comment that requested the FDIC not use the term “non-
traditional branches,” the FDIC did not intend to affect how the term “branch” is defined

21 Final 12 CFR 328.3(b) (emphasis added).
22 See 12 U.S.C. 1828(a)(1)(A), 1828(a)(2).

16

or interpreted in other regulations. In the preamble to the proposal, the FDIC used the
term “non-traditional branches” to help distinguish such places of business from what are
commonly viewed as the “traditional branches” where deposits are usually and normally
received at only teller windows. The FDIC intended for the term to describe the new
layouts and designs that some IDIs are using where deposits are usually and normally
received in areas other than teller windows or stations.23
However, to prevent potential confusion related to the term “branch” and its
applications in other regulations, the preamble to the final rule will not refer to the term
“non-traditional branches.” Rather, under the final rule, the signage requirements apply
to an IDI’s places of business where consumers have access to, or transact with, deposits,
including branches and other physical premises (e.g., café-style locations). As a result,
the types of bank premises that were intended to be covered under the proposal are
covered by the final rule. For example, under a scenario where an IDI usually and
normally receives insured deposits at a teller window or station and other areas within the
same premise, then pursuant to the final rule, the IDI is required to display the official
sign in accordance with the applicable signage requirements for each area as provided in
§ 328.3(b)
overed under the proposal are
covered by the final rule. For example, under a scenario where an IDI usually and
normally receives insured deposits at a teller window or station and other areas within the
same premise, then pursuant to the final rule, the IDI is required to display the official
sign in accordance with the applicable signage requirements for each area as provided in
§ 328.3(b).
Display of official sign when deposits received at teller windows or stations
Proposed rule
Under the proposed rule, if IDIs usually and normally receive deposits at teller
windows or stations, IDIs would have been required to display the official sign at each
teller window or station in a size of 7″ by 3″ or larger with black lettering on a gold

23 See final 12 CFR 328.3(b)(2).

17

background. The proposed rule would also have allowed flexibility with respect to
display of the official sign where the IDI usually and normally receives deposits at teller
windows or stations and only offers insured deposit products on the premises. In such
instances, an IDI would have the option to display the official sign at one or more
locations visible from the teller windows or stations in a manner that ensures a copy of
the official sign is large enough so as to be legible from anywhere in that area.
Discussion of comments
One commenter suggested that the FDIC provide IDIs with flexibility to display
clear and conspicuous signage and disclosures best suited for a particular branch facility.
The commenter further stated that branch managers and other employees are readily
available onsite to answer customer questions and address any confusion to the extent a
customer may have questions, even with the presence of clear, conspicuous disclosures
e FDIC provide IDIs with flexibility to display
clear and conspicuous signage and disclosures best suited for a particular branch facility.
The commenter further stated that branch managers and other employees are readily
available onsite to answer customer questions and address any confusion to the extent a
customer may have questions, even with the presence of clear, conspicuous disclosures.
With respect to IDIs that only offer insured deposit products on the premises, one
commenter requested clarification as to whether the proposed flexible option would apply
if the IDI’s larger locations offer non-deposit products. The same commenter also
commended the FDIC for providing flexibility in signage placement but sought an
example of what the FDIC would consider a sign “large enough to be legible from
anywhere in that area” to satisfy this flexible option.
Final Rule
The FDIC is finalizing the proposed requirements with respect to the display of
the official sign when IDIs usually and normally receive deposits at teller windows or
stations. The final rule will continue to require that IDIs display the official sign at each
teller window or station in a size of 7” by 3” or larger, with black lettering on a gold

18

background, if insured deposits are usually and normally received at teller windows or
stations.
As provided under the proposal, the FDIC believes that it is appropriate to allow
additional flexibility with respect to display of the official sign in instances when the IDI
usually and normally receives deposits at teller windows and stations and only offers
insured deposit products on the premises. In such cases, the requirement to display the
official sign at each teller window or station may be satisfied by displaying the official
sign in one or more locations visible from the teller windows or stations, in a size large
enough to be legible from anywhere in that area
and normally receives deposits at teller windows and stations and only offers
insured deposit products on the premises. In such cases, the requirement to display the
official sign at each teller window or station may be satisfied by displaying the official
sign in one or more locations visible from the teller windows or stations, in a size large
enough to be legible from anywhere in that area. This flexible option would apply to
branches that do not offer non-deposit products on the premises even if the IDI’s other
locations offer non-deposit products.24
Under the final rule, whether the display of the official sign is “large enough to be
legible from anywhere in that area” means that the average customer can easily see and
read the sign from a reasonable distance from that area. This would depend on factors
specific to the layout of the bank’s physical premises or places of business and the sign
used, such as the size and shape of the physical location, the area where deposits are
usually and normally accepted, a sign’s placement, a sign’s size, and its font and colors.
For example, if a bank’s place of business has two teller windows right next to each other
and it posts one official sign between the teller windows that is large enough to be legible
to depositors at both teller windows, that approach would meet the standard. Banks’
places of business vary significantly in size and layout, and the final rule is intended to
provide banks the flexibility to account for these physical variations.

24 See infra Non-Deposits Sign on IDI’s Premises Section for discussion on the offering of non-deposit
products.
oth teller windows, that approach would meet the standard. Banks’
places of business vary significantly in size and layout, and the final rule is intended to
provide banks the flexibility to account for these physical variations.

24 See infra Non-Deposits Sign on IDI’s Premises Section for discussion on the offering of non-deposit
products.

19

Display of official sign when deposits received in areas other than teller windows or
stations
Proposed Rule
Under the proposal, if an IDI usually and normally receives deposits in areas of
the premises other than teller windows or stations, IDIs would have been required to
display the official sign in one or more locations in a manner that ensures the official sign
is large enough so as to be legible from anywhere in those areas.
Discussion of comments
As discussed above, a commenter suggested that non-branch locations should not
be subject to the proposed rule’s sign requirements.
Final rule
Consistent with the proposal, the final rule provides that if insured deposits are
usually and normally received in areas of the premises other than teller windows or
stations (e.g., café-style locations), the IDI is required to display the official sign in one
or more locations in a size large enough to be legible anywhere in those deposit-taking
areas.25 The FDIC believes that such a requirement will help ensure that IDI customers
are aware that their deposits are protected by deposit insurance.
As discussed above, an IDI’s premises, including non-branch locations that
receive deposits in areas other than teller windows or stations, are subject to the final
rule’s requirements
enough to be legible anywhere in those deposit-taking
areas.25 The FDIC believes that such a requirement will help ensure that IDI customers
are aware that their deposits are protected by deposit insurance.
As discussed above, an IDI’s premises, including non-branch locations that
receive deposits in areas other than teller windows or stations, are subject to the final
rule’s requirements. For example, an IDI’s café-style location that does not receive

25 As discussed, whether the display of the official sign is “large enough to be legible from anywhere in
that area” means that the average customer can easily see and read the sign from a reasonable distance
from that area depending on factors specific to the layout of the bank’s physical branch and the sign used,
such as the size and shape of the physical location, the area where deposits are usually and normally
accepted, a sign’s placement, a sign‘s size, and its font and colors.

20

deposits at a teller window or station, but where customers engage with bankers in an
open area and customers have access to or transact with deposits, is subject to the sign
requirements under the final rule.
Non-deposit signage on an IDIs’ physical premises
Proposed Rule
When both insured deposits and non-deposit products are offered within the IDI’s
premises (regardless of whether deposits are received at teller windows or stations or
deposits are received in areas other than teller windows or stations), the proposed rule
would have required IDIs to display a non-deposit sign within a segregated area and not
in close proximity to the official sign. The proposed rule would have required that IDIs
continuously, clearly, and conspicuously display signage indicating that the non-deposit
products: are not insured by the FDIC; are not deposits; and may lose value
r than teller windows or stations), the proposed rule
would have required IDIs to display a non-deposit sign within a segregated area and not
in close proximity to the official sign. The proposed rule would have required that IDIs
continuously, clearly, and conspicuously display signage indicating that the non-deposit
products: are not insured by the FDIC; are not deposits; and may lose value.
Under the proposed rule, the definition of “non-deposit product” read as, “Any
product that is not a ‘deposit’, including, but not limited to: stocks, bonds, government
and municipal securities, mutual funds, annuities (fixed and variable), life insurance
policies (whole and variable), savings bonds, and crypto-assets. For purposes of this
definition, a credit product is not a non-deposit product.”26
Discussion of Comments
Non-deposit product definition. One commenter requested clarification on what
products constitute a non-deposit product under the proposed rule, such that they would
require the display of the non-deposit sign. Specifically, the commenter noted the
proposal only included life insurance policies that are whole or variable and requested

26 87 FR 78017, 78033, 78036 (Dec. 21, 2022).

21

clarification as to whether other types of insurance offerings are also included in the
definition. Moreover, the commenter requested clarification on whether safe deposit box
services would be considered a non-deposit product requiring the display of the non-
deposit sign.
Non-deposit sign design. With respect to the design of the non-deposit sign, one
commenter stated that it would not be necessary for the FDIC to fully standardize the
design, but recommended the FDIC set minimum standards for the sign such as a
minimum font size
on on whether safe deposit box
services would be considered a non-deposit product requiring the display of the non-
deposit sign.
Non-deposit sign design. With respect to the design of the non-deposit sign, one
commenter stated that it would not be necessary for the FDIC to fully standardize the
design, but recommended the FDIC set minimum standards for the sign such as a
minimum font size. Another commenter supported standardization of the non-deposit
sign and suggested a standardized icon, such as the red circle-backslash symbol overlaid
on the word “FDIC” or “FDIC-insured” with the phrase “NOT FDIC-insured”
underneath the symbol.
Display of non-deposit sign. Some commenters requested that the FDIC take a
less prescriptive approach with respect to the non-deposit sign requirements and adopt a
more flexible approach that can change with evolving technology and business practices.
Two commenters suggested that the FDIC adopt a single, centralized disclosure approach
to address deposit and non-deposit products rather than separate signage requirements.
Another commenter raised concerns that the costs of segregating physical signage across
multiple branch locations would be challenging in smaller branch locations and requested
further clarification when separation would be required for institutions with various
service offerings.
One commenter requested the FDIC define the term “offers” in relation to the
offering of non-deposit products on the IDI’s physical premises that would require the
display of the non-deposit sign. The commenter stated that they understood “offers” to
ller branch locations and requested
further clarification when separation would be required for institutions with various
service offerings.
One commenter requested the FDIC define the term “offers” in relation to the
offering of non-deposit products on the IDI’s physical premises that would require the
display of the non-deposit sign. The commenter stated that they understood “offers” to

22

mean that the bank has personnel on the premises who are licensed to sell non-deposit
products but would exclude locations without onsite staff licensed to sell non-deposit
products.
Final rule
The FDIC is finalizing the proposed requirement to display non-deposit signs
when both insured deposits and non-deposit products are offered within the IDI’s
premises. The final rule’s non-deposit sign requirement applies to both an IDI’s places of
business where deposits are received at teller windows or stations and an IDI’s places of
business where deposits are received in areas other than teller windows or stations (e.g.,
café-style locations). Under the final rule an IDI generally must physically segregate the
areas where non-deposit products are offered from areas where insured deposits are
usually and normally accepted, and display a sign in the non-deposit areas indicating that
non-deposit products: are not insured by the FDIC; are not deposits; and may lose
value.27 An IDI is required to continuously, clearly, and conspicuously display this non-
deposit sign; however, the final rule does not include specific design or size
requirements. To minimize the potential for consumer confusion, the final rule prohibits
display of non-deposit signs in close proximity to the official FDIC sign.
Non-deposit product definition
Through the proposed rule, the FDIC intended to provide further clarity on the
types of products that would constitute non-deposit products
the final rule does not include specific design or size
requirements. To minimize the potential for consumer confusion, the final rule prohibits
display of non-deposit signs in close proximity to the official FDIC sign.
Non-deposit product definition
Through the proposed rule, the FDIC intended to provide further clarity on the
types of products that would constitute non-deposit products. In response to comments
related to the non-deposit definition, the FDIC acknowledges that the proposed

27 As noted above, this requirement is intended to be generally consistent with longstanding interagency
guidance on the retail sale of non-deposit investment products that many institutions already follow and
thus should be familiar to many consumers.

23

definition, as written, could be read as excluding products that would otherwise constitute
a non-deposit product. Accordingly, the final rule generally retains the current non-
deposit definition with minor changes, discussed in further detail below.
The final rule defines a non-deposit product as: “[A]ny product that is not a
‘deposit’, including, but not limited to: insurance products, annuities, mutual funds,
securities, and crypto-assets. For purposes of this definition, credit products and safe
deposit box services are not non-deposit products.”28
The definition under the final rule provides a non-exclusive list of general
examples of the types of products that constitute non-deposit products that is consistent
with the long-standing definition, updated to include “crypto-assets.”29 However, the
FDIC agrees with a commenter that safe deposit boxes should not be included in the
definition for purposes of requiring display of the non-deposit sign under part 328,
Subpart A, and has revised the definition under the final rule to clarify the treatment of
safe deposit boxes.30 Banks have a longstanding history of providing safe deposit box
services to consumers to store valuables in a pri
FDIC agrees with a commenter that safe deposit boxes should not be included in the
definition for purposes of requiring display of the non-deposit sign under part 328,
Subpart A, and has revised the definition under the final rule to clarify the treatment of
safe deposit boxes.30 Banks have a longstanding history of providing safe deposit box
services to consumers to store valuables in a private, secure section of the bank.
Accordingly, IDIs are not required to display the non-deposit sign in areas where IDIs
provide safe deposit boxes and offer no other non-deposit products.
Design of non-deposit sign
Consistent with the proposal, the final rule requires IDIs that offer both deposit
and non-deposit products at their physical premises to display a non-deposit sign in a
continuous, clear, and conspicuous manner with information indicating that non-deposit

28 Final 12 CFR §§ 328.1, 328.101.
29 See infra Crypto-Assets Section for further discussion.
30 For purposes of Part 328, Subpart B, the “non-deposit definition” includes safe deposit boxes.

24

products: are not insured by the FDIC; are not deposits; and may lose value. The FDIC is
not standardizing the design of the non-deposit sign as the FDIC believes the rule strikes
a proper balance in providing IDIs flexibility, but also helps prevent consumer confusion
by requiring signs informing consumers of the risks associated with non-deposit products.
With respect to the comment to use red circle-backslash over “FDIC” or “FDIC-insured,”
the FDIC views the suggestion as potentially confusing to consumers. With respect to
the recommendation that the FDIC set minimum standards for the sign such as a
minimum font size, the final rule, as proposed, requires that the sign be displayed in a
continuous, clear, and conspicuous manner
it products.
With respect to the comment to use red circle-backslash over “FDIC” or “FDIC-insured,”
the FDIC views the suggestion as potentially confusing to consumers. With respect to
the recommendation that the FDIC set minimum standards for the sign such as a
minimum font size, the final rule, as proposed, requires that the sign be displayed in a
continuous, clear, and conspicuous manner. As such, the FDIC believes this standard
will help mitigate potential concerns regarding minimum font sizes and standards to
ensure that consumers are able to view clearly the non-deposit sign. Accordingly, the
FDIC is not adopting this recommendation and is not standardizing the design of the non-
deposit sign.
Display of the non-deposit sign
Under the final rule, the FDIC requires IDIs that offer both insured deposits and
non-deposit products to clearly delineate and distinguish areas where activities related to
the sale of non-deposit products occur from the areas where insured deposit-taking
activities occur. The FDIC believes requiring display of the non-deposit sign in a
physically segregated area would more effectively mitigate the potential for consumer
confusion than a centralized disclosure as recommended by some commenters, as it
would better alert consumers when products are not insured. Further, given that the final
rule does not require standardization of the non-deposit sign and provides IDIs flexibility
regarding the design of the non-deposit sign, the FDIC believes that the approach taken in
vely mitigate the potential for consumer
confusion than a centralized disclosure as recommended by some commenters, as it
would better alert consumers when products are not insured. Further, given that the final
rule does not require standardization of the non-deposit sign and provides IDIs flexibility
regarding the design of the non-deposit sign, the FDIC believes that the approach taken in

25

the final rule is responsive to commenter concerns on flexibility.
With respect to comments noting concerns on the costs of segregating physical
signage across multiple locations and requesting further clarification on when separation
would be required, the non-deposit sign requirement is intended to be generally
consistent with practices described in the longstanding interagency guidance on the retail
sale of non-deposit investment products.31 As a result, the FDIC has added a provision to
the final rule, generally consistent with longstanding guidance, noting that in limited
situations in which physical considerations present challenges to offering non-deposit
products in a distinct area, institutions must take prudent and reasonable steps to
minimize customer confusion. This guidance has informed many institutions’ current
approaches, and thus should be familiar to many IDIs and consumers.
Consistent with the interagency guidance, the FDIC expects IDIs to minimize the
possibility of consumer confusion when delineating the areas where non-deposit activities
take place from areas where insured deposit-taking activities occur. The FDIC intends
for the delineation requirement to include some flexibility, depending on the
circumstances. For example, IDIs could conduct non-deposit related activity in separate
areas or in areas that are not in close proximity to where deposits are taken by using a
desk, cubicle, partitions, railings, planters, a separate room, or other indicator that the
area is distinct and separate from the deposit-taking area
lineation requirement to include some flexibility, depending on the
circumstances. For example, IDIs could conduct non-deposit related activity in separate
areas or in areas that are not in close proximity to where deposits are taken by using a
desk, cubicle, partitions, railings, planters, a separate room, or other indicator that the
area is distinct and separate from the deposit-taking area. In the limited situations where
IDIs experience challenges in physically segregating products, IDIs must take prudent
and reasonable steps to minimize consumer confusion, consistent with the regulation’s

31 See Interagency Statement on Retail Sales of Non-deposit Investment Products, FIL–9–94 (Feb. 17,
1994), available at: https://www.fdic.gov/news/financial-institution-letters/1994/fil9409.html.

26

requirements.
In response to the commenter requesting clarification on the term “offers” for
purposes of displaying the non-deposit sign under part 328, the FDIC interprets “offers”
to capture situations where customers are presented with or sold non-deposit products
within an IDI’s physical premises. This could include situations where personnel are not
physically present on the bank premises, but the IDI presents or sells non-deposit
products to consumers within the bank’s premises. As an example, non-deposit signs are
required in areas where the consumer is offered non-deposit products within an IDI’s
physical premises by personnel through an electronic communication device (e.g., an
interactive kiosk or tablet).
Relevance of non-deposit sign requirements to Interagency Statement of Policy
The federal banking agencies have previously issued guidance to IDIs they
supervise relating to the retail sale of non-deposit investment products.32 The FDIC’s
proposed rule stated that its non-deposit sign requirement was intended to be consistent
with the practices described in this longstanding interagency guidance
evance of non-deposit sign requirements to Interagency Statement of Policy
The federal banking agencies have previously issued guidance to IDIs they
supervise relating to the retail sale of non-deposit investment products.32 The FDIC’s
proposed rule stated that its non-deposit sign requirement was intended to be consistent
with the practices described in this longstanding interagency guidance. Specifically, the
proposed rule’s non-deposit sign requirements were similar to disclosures related to sales
of non-deposit products described in the interagency guidance.
Use of Electronic Media or Varied Signs to Satisfy Official Sign and Non-deposit Sign
Requirements on IDIs’ Premises
Proposed Rule
Under the proposed rule, IDIs would have had the option to display the official
sign and non-deposit sign through the use of electronic media. The proposed rule also

32 Id.

27

would retain certain provisions of existing regulations that provide IDIs with flexibility in
displaying the official sign. Under the proposal, IDIs would have the option to display
the official sign in locations on the premises other than those required under the rule,
except for in areas where non-deposit products are offered. For locations where display
of the official sign is required, IDIs could choose to display signs that vary from the
official sign in size, color, or material, provided that the sign is no smaller than the
official sign, has the same color for the text and graphics, and includes the same content.
Discussion of Comments
Commenters supported the proposed option to use electronic media to display the
official sign and non-deposit sign. One commenter recommended that the FDIC produce
educational, captioned consumer videos to be displayed on digital signage within an
IDI’s lobby.
Final Rule
The final rule adopts the proposal to provide IDIs the flexibility to utilize
electronic media to satisfy sign requirements on an IDI’s premises
proposed option to use electronic media to display the
official sign and non-deposit sign. One commenter recommended that the FDIC produce
educational, captioned consumer videos to be displayed on digital signage within an
IDI’s lobby.
Final Rule
The final rule adopts the proposal to provide IDIs the flexibility to utilize
electronic media to satisfy sign requirements on an IDI’s premises. This provision
allowing IDIs to use electronic signs applies to both display of the official sign and non-
deposit signage, where required, and would similarly be subject to the continuous, clear,
and conspicuous display standard. Accordingly, a rotating display will not satisfy the
“continuous” requirement applicable to the display of official sign and non-deposit sign.
The final rule also retains certain provisions of current regulations that provide
IDIs with flexibility in displaying the official sign. IDIs have the option to display the
official sign in locations on the premises other than those required under the rule, except
for in areas where non-deposit products are offered. For locations where display of the

28

official sign is required, IDIs may choose to display signs that vary from the official sign
in size, color, or material, provided that the sign is no smaller than the official sign, has
the same color for the text and graphics, and includes the same content.
Under the final rule, the FDIC will not require IDIs to display FDIC-produced
videos within their physical premises. The FDIC is, however, undertaking several efforts
to educate consumers regarding deposit insurance and the role of the FDIC, including a
public awareness campaign on deposit insurance launched in October 2023.33
3
r for the text and graphics, and includes the same content.
Under the final rule, the FDIC will not require IDIs to display FDIC-produced
videos within their physical premises. The FDIC is, however, undertaking several efforts
to educate consumers regarding deposit insurance and the role of the FDIC, including a
public awareness campaign on deposit insurance launched in October 2023.33
3. Sign Requirements for Digital Deposit-Taking Channels
The final rule will facilitate banks providing consumers with clear, consistent, and
accurate digital disclosures to promote consumers’ understanding of when they are
interacting with an IDI and when their funds are protected by the FDIC’s deposit
insurance coverage. At the same time, the FDIC intends to permit some flexibility for
IDIs with respect to digital sign requirements. As such, the FDIC is finalizing sign
requirements related to IDI digital channels, with some changes and clarifications, as
described below.
a. FDIC Official Digital Sign
Proposed Rule
Under the proposal, an IDI would have been required to clearly, continuously, and
conspicuously display a newly established digital sign on the IDI’s homepage, landing
and login pages or screens, and transactional pages or screens involving deposits, to the
extent applicable. The proposal further provided that a digital sign displayed in a
continuous manner, near the top of the relevant page or screen in close proximity to the

33 FDIC’s national consumer campaign (“Know Your Risk. Protect Your Money”), available at:
https://www.fdic.gov/news/campaigns/know-your-risk/index.html.
deposits, to the
extent applicable. The proposal further provided that a digital sign displayed in a
continuous manner, near the top of the relevant page or screen in close proximity to the

33 FDIC’s national consumer campaign (“Know Your Risk. Protect Your Money”), available at:
https://www.fdic.gov/news/campaigns/know-your-risk/index.html.

29

IDI’s name, would be considered “clear and conspicuous.” The proposed digital sign
was intended to visually communicate to consumers that they are conducting business
with an IDI rather than a non-bank. The proposal provided that the FDIC expected the
digital sign to be an abbreviated version of the official sign and that it would prominently
bear the name of the FDIC and the statement that insured deposits are backed by the full
faith and credit of the U.S. Government.
Discussion of Comments
Some commenters raised concerns that the proposed changes in digital signage
design and placement were overly prescriptive and may be difficult to implement due to
technological and budgetary limits. However, other commenters supported the proposed
requirement, noting the importance of ensuring that bank customers are made fully aware
of situations where deposit insurance is present and is separate and distinct from product
offerings that do not include deposit insurance.
With respect to the placement of the proposed digital sign on the IDI’s homepage,
landing and login pages or screens, one commenter offered that home pages and landing
pages are not the primary point of interaction between banks and customers, noting that
home pages are generally used for marketing, not customer transactions. As such, the
commenter believed only pages with transactional capacity should be subject to the
proposed signage requirement
on the IDI’s homepage,
landing and login pages or screens, one commenter offered that home pages and landing
pages are not the primary point of interaction between banks and customers, noting that
home pages are generally used for marketing, not customer transactions. As such, the
commenter believed only pages with transactional capacity should be subject to the
proposed signage requirement. Some commenters questioned the necessity of displaying
the same digital signage on each subsequent screen after a customer has logged in, and
thought that the rules were unclear regarding internal transfer screens between FDIC-
insured products after log-in. One comment noted that having the digital sign on login
and other pages could imply to customers that deposit insurance applies to all products on

30

the website.
Several commenters recommended that the FDIC adopt a more flexible approach
where banks could place the digital sign on the bank’s webpage. One commenter noted
that many websites use a basic template that carries through each successive webpage
and that template could contain the required statement. To allow for further flexibility in
implementation and compliance, a commenter suggested that the FDIC add a “reasonable
person test” when assessing the digital signage requirements in order to allow banks to
continue to innovate. Another commenter provided that there would be no significant
difference for a consumer in placing the FDIC official digital sign at the top of the page
in close proximity to the bank name, other than increased costs for the IDIs. Other
commenters supported the proposal to place the sign at the top of the screen to comply
with the clear and conspicuous requirement.
The FDIC notes that a specific question was asked as part of the NPR about the
design of the digital sign but no comments were received in response to this question
op of the page
in close proximity to the bank name, other than increased costs for the IDIs. Other
commenters supported the proposal to place the sign at the top of the screen to comply
with the clear and conspicuous requirement.
The FDIC notes that a specific question was asked as part of the NPR about the
design of the digital sign but no comments were received in response to this question.
Final Rule
After carefully considering the comments received, the FDIC is adopting this part
of the proposed rule as final and will require IDIs to display the FDIC official digital sign
“clearly and conspicuously” in a continuous manner, near the top of the relevant page or
screen, and in close proximity to the IDI’s name. The FDIC is finalizing a design for the
FDIC official digital sign that consists of “FDIC” along with the following text: “FDIC-
Insured- Backed by the full faith and credit of the U.S. Government.” Below is the design
for the FDIC official digital sign under 328.5:

31

The final rule establishes a clear standard to promote consistency in the use and
application of the FDIC official digital sign by IDIs. The rule specifies the color, size,
and font to establish an easily recognizable, consistent digital sign to convey the certainty
and confidence historically provided by the FDIC official sign at banks’ teller
windows. Recognizing the variability in the design and color of IDI websites, the final
rule also provides an alternative color if the specified colors, navy blue and black, would
not be legible against the background design colors of the IDI’s webpage or mobile
banking application.
The final rule requires “FDIC” in the FDIC official digital sign to be displayed
with a wordmark size of 37.36 x 15.74px in navy blue (hexadecimal color code
#003256), with “FDIC-Insured - Backed by the full faith and credit of the U.S.
Government” in Source Sans Pro Web font (regular 400 italic), 12.8px, displayed in
black (hexadecimal color code #000000) lettering
le
banking application.
The final rule requires “FDIC” in the FDIC official digital sign to be displayed
with a wordmark size of 37.36 x 15.74px in navy blue (hexadecimal color code
#003256), with “FDIC-Insured - Backed by the full faith and credit of the U.S.
Government” in Source Sans Pro Web font (regular 400 italic), 12.8px, displayed in
black (hexadecimal color code #000000) lettering. If the official FDIC digital sign in
these colors would be illegible due to the color of the background, the final rule requires
the “FDIC” and the one line of smaller type to the right of “FDIC” to both be displayed in
white (hexadecimal color code #FFFFFF).
The FDIC official digital sign aligns with the statutory provisions in Section 18 of
the FDI Act on the display of signage at each IDI’s principal place of business relating to
the insurability of deposits and, consistent with Section 18 of the FDI Act, the FDIC
official digital sign includes a statement that insured deposits are backed by the full faith
and credit of the U.S. Government. The FDIC appreciates the issues raised by
commenters with respect to the FDIC official digital sign, including supporting flexibility

32

and ensuring the new FDIC official digital sign does not cause depositor
confusion. Given the discussion above regarding the increased use of mobile banking, as
well as the FDIC’s interest in protecting consumers, the FDIC believes the requirement to
display the FDIC official digital sign will promote consumer confidence in the Nation’s
banking system and benefit IDIs by assisting consumers in more easily identifying IDI
websites.
The FDIC believes that the use of the FDIC official digital sign by IDIs will assist
consumers in better understanding when they are conducting business with an IDI and
when they are interacting with a non-bank entity. Seeing the FDIC official digital sign on
all IDI websites and mobile applications will promote awareness that consumers are
doing business with FDIC-insured institutions
s.
The FDIC believes that the use of the FDIC official digital sign by IDIs will assist
consumers in better understanding when they are conducting business with an IDI and
when they are interacting with a non-bank entity. Seeing the FDIC official digital sign on
all IDI websites and mobile applications will promote awareness that consumers are
doing business with FDIC-insured institutions. Display of the FDIC official digital sign
by any non-bank third party would improperly imply that the non-bank is FDIC-insured
and would constitute a misrepresentation under part 328 subpart B.
The FDIC official digital sign must be displayed on the (1) initial or homepage of
the website or application, (2) landing or login pages, and (3) pages where the customer
may transact with deposits. For example, the FDIC official digital sign should be
displayed where an IDI’s mobile application allows customers to deposit checks
remotely, because this electronic space is in effect a digital teller window.
In response to comments related to technical issues and potential costs, the FDIC
recognizes the commenters’ concerns. But several comments also highlighted the
importance and value of clear and conspicuous signage to prevent consumer
confusion. The FDIC believes that the benefits of the FDIC official digital sign outweigh
the concerns about costs. To alleviate those concerns the FDIC is reviewing options to
ents related to technical issues and potential costs, the FDIC
recognizes the commenters’ concerns. But several comments also highlighted the
importance and value of clear and conspicuous signage to prevent consumer
confusion. The FDIC believes that the benefits of the FDIC official digital sign outweigh
the concerns about costs. To alleviate those concerns the FDIC is reviewing options to

33

provide IDIs with technical assistance or guidance to assist in implementing the FDIC
official digital sign requirements. The FDIC will also review options to provide an image
of the FDIC official digital sign to IDIs upon request at no charge, similar to the process
by which the FDIC provides banks with physical official signs.
b. Digital Display of Non-deposit Signage
Proposed Rule
Under the proposed rule, if a digital deposit-taking channel offers access to
deposits, as well as non-deposit products, IDIs would have been required to clearly,
continuously and conspicuously display a non-deposit sign indicating that the non-deposit
products: are not insured by the FDIC; are not deposits; and may lose value.
To satisfy this proposed requirement, the proposed rule would have required the
continuous display of the non-deposit sign (referred to as the “static” non-deposit sign)
on each IDI page relating to non-deposit products and prohibit displaying the non-deposit
sign in close proximity to the FDIC official digital sign. The FDIC would expect the
non-deposit signage to be in a prominent place, in an appropriate size, and displayed in a
continuous manner for any consumer accessing the page to notice. The proposal
provided, however, that institutions would have flexibility in the way they market non-
deposit products and did not specify design or size requirements for this non-deposit
sign
ficial digital sign. The FDIC would expect the
non-deposit signage to be in a prominent place, in an appropriate size, and displayed in a
continuous manner for any consumer accessing the page to notice. The proposal
provided, however, that institutions would have flexibility in the way they market non-
deposit products and did not specify design or size requirements for this non-deposit
sign.
In addition, under the proposed rule, IDIs would have been required to display
this non-deposit sign via a “one-time” notification when consumers initially access a page
related to non-deposit products (referred to as the one-time notification). The notification
would have provided an initial, prominent display of the non-deposit information to alert

34

consumers that they are dealing with non-deposit products that are not covered by FDIC
insurance. Moreover, consumers would need to take action to dismiss the notification
before accessing the relevant page or screen.
Discussion of Comments
Commenters generally recommended that the FDIC consider the costs related to
implementing the digital signage requirements for IDIs and to ensure that the
requirements are not overly burdensome for consumers and the industry.
More specifically, several commenters raised concerns that the increased digital
signage requirements would increase costs for banks without countervailing benefits for
consumers. While agreeing with the sentiment behind the proposed pop-up requirement,
two commenters noted that creating pop-ups can be operationally complex and may be
burdensome for smaller institutions to implement. Similarly, another commenter raised
technical concerns and suggested a reduction of the repetitive disclosures.
One commenter recommended that the FDIC only finalize a requirement for non-
deposit disclosures to be included statically on the applicable pages, and not require
affirmative consumer action regarding such disclosures
ex and may be
burdensome for smaller institutions to implement. Similarly, another commenter raised
technical concerns and suggested a reduction of the repetitive disclosures.
One commenter recommended that the FDIC only finalize a requirement for non-
deposit disclosures to be included statically on the applicable pages, and not require
affirmative consumer action regarding such disclosures.
Some commenters also stated that the proposed digital signage requirements
could lead to customer confusion and create a suboptimal customer
experience. Relatedly, another commenter stated that the proposed digital pop-up
message could degrade the customer experience and may cause difficulties for screen
readers used by disabled customers.
One commenter expressed appreciation about the ability of “pop-ups”,
“speedbumps”, or “overlays” to notify consumers of non-deposit products and ensure that

35

they remain properly informed. However, the commenter also asserted that to reflect the
various business models, products, and services, as well as adequately respect the
importance of a consumer’s experience in the increasingly competitive online financial
services market, the FDIC should allow banks to work with their non-bank partners to
ensure proper disclosure and ensure that these disclosures are properly applied to the
various online platforms and consumer experiences.
Several commenters supported the proposed requirements, noting that it would be
beneficial for customers to know a given entity’s or product’s insured status. One
commenter advocated for the FDIC to require IDIs to explicitly mark every financial
product as either insured or non-insured and advocated for a more comprehensive
disclosure statement
us online platforms and consumer experiences.
Several commenters supported the proposed requirements, noting that it would be
beneficial for customers to know a given entity’s or product’s insured status. One
commenter advocated for the FDIC to require IDIs to explicitly mark every financial
product as either insured or non-insured and advocated for a more comprehensive
disclosure statement.
Non-Deposit Digital Signage in Final Rule: Requirements When Non-Deposit Products
and Deposit Products are Offered Through Same Digital Deposit-Taking Channel
After consideration of the comments responding to the proposed non-deposit
digital signage requirements, the FDIC is finalizing certain aspects of the proposal and
modifying other aspects as described below.
The FDIC is finalizing the requirement for IDIs to clearly and conspicuously
display the “static” non-deposit signage on its digital deposit-taking channels. More
specifically, if an IDI’s digital deposit-taking channel offers access to both deposits at the
IDI and non-deposit products, the IDI must clearly and conspicuously display34 signage
indicating that the non-deposit products: are not insured by the FDIC; are not deposits;

34 Some IDIs currently display non-deposit disclosures in small font near the bottom of web pages and
application screens. Consumers are unlikely to notice such disclosures and may mistakenly believe that
non-deposits products are covered by FDIC insurance. Such display of non-deposit disclosures would not
satisfy the clear, continuous, and conspicuous display requirement of the proposed rule.
4 Some IDIs currently display non-deposit disclosures in small font near the bottom of web pages and
application screens. Consumers are unlikely to notice such disclosures and may mistakenly believe that
non-deposits products are covered by FDIC insurance. Such display of non-deposit disclosures would not
satisfy the clear, continuous, and conspicuous display requirement of the proposed rule.

36

and may lose value. This signage must be displayed on each IDI page relating to non-
deposit products and may not be displayed in close proximity to the FDIC digital sign.
The static non-deposit language described above will provide an important disclosure
aimed at addressing potential customer confusion regarding the insured status of
particular products offered by IDIs.
Separately, the FDIC acknowledges the commenters that discussed the one-time
non-deposit notification requirement increasing costs, being operationally complex, and
creating a suboptimal customer experience. The FDIC has concluded that having two
separate disclosures relating to non-deposit products on an IDI’s digital channel – the
“static” signage and the one-time notification – are unnecessary. One such disclosure
will sufficiently inform consumers and mitigate risks. As such, and in response to
commenter concerns, the FDIC is only retaining a part of the proposed one-time
notification requirement and is narrowing the scope for when the one-time notification is
provided.
Under the final rule, IDIs will only be required to display a one-time notification
when a bank customer accesses non-deposit products from a non-bank third party via an
IDI’s digital deposit-taking channel such as through a hyperlink (or similar weblinking
feature)
of the proposed one-time
notification requirement and is narrowing the scope for when the one-time notification is
provided.
Under the final rule, IDIs will only be required to display a one-time notification
when a bank customer accesses non-deposit products from a non-bank third party via an
IDI’s digital deposit-taking channel such as through a hyperlink (or similar weblinking
feature). For example, if an IDI’s digital channel offers a third party’s securities product
that requires the bank customer to leave the IDI’s website and access the securities
product on the third party’s website, then the IDI will be required to provide the bank
customer with a “one time” notification before the customer leaves the IDI’s digital
channel.
Moreover, under the final rule, the “one time” notification requirement will not

37

apply broadly to all consumers accessing the IDI’s website; instead, it will only apply to
bank customers that have logged into their respective account at a particular IDI website.
The “one time” notification will be required per web session, which is the period of
interaction between a bank customer and the IDI’s digital channel, starting when the
customer logs in and ending when the customer logs off.
Consistent with the proposal, the “one time” notification must be clearly and
conspicuously displayed and indicate that the non-deposit products: are not insured by the
FDIC; are not deposits; and may lose value. The one-time notification could include, for
example, an IDI using a “pop-up”, “speedbump”, or “overlay” that displays a notification
to the customer that the customer must dismiss before accessing the content related to
non-deposit products on the third party’s website
sly displayed and indicate that the non-deposit products: are not insured by the
FDIC; are not deposits; and may lose value. The one-time notification could include, for
example, an IDI using a “pop-up”, “speedbump”, or “overlay” that displays a notification
to the customer that the customer must dismiss before accessing the content related to
non-deposit products on the third party’s website.
Bank customers, who log in to their bank’s website and can access non-deposit
products through their IDI’s deposit-taking digital channel, may click on a hyperlink that
takes them to an IDI’s non-deposit page or click on a hyperlink that, unbeknownst to the
customer, causes them to leave the bank’s website to access non-deposit products offered
or presented by a third party. From the FDIC’s perspective, this raises two areas of
elevated risk regarding customer confusion and potential harm because a bank customer
is moving: (a) from an IDI to a non-bank; and (b) from an FDIC-insured deposit area to a
non-deposit area. Further, bank customers that are accessing the third party’s website
will not have the same benefit of the “static” non-deposit signage that will be available on
IDI digital channels.
As described above, one commenter recommended that the FDIC allow banks to
work with their non-bank partners to ensure proper disclosure and ensure that these

38

disclosures are properly applied to the various online platforms and consumer
experiences. Given that certain non-bank third parties may offer both deposit products
through a bank partner and non-deposit products on its website, IDIs will have discretion
to provide customers with additional disclosure information as part of its one-time
notification related to products offered by the non-bank third party, which may further
minimize customer confusion
orms and consumer
experiences. Given that certain non-bank third parties may offer both deposit products
through a bank partner and non-deposit products on its website, IDIs will have discretion
to provide customers with additional disclosure information as part of its one-time
notification related to products offered by the non-bank third party, which may further
minimize customer confusion.
The final rule’s narrower, less burdensome, one-time non-deposit notification
responds to several commenters’ concerns, while still mitigating the broader consumer
protection risks by enabling bank customers to better understand when they are doing
business with an IDI and when their funds are protected by the FDIC’s deposit insurance
coverage.
Regarding the comment about digital pop-up disclosures causing issues for
disabled customers that use screen readers, the FDIC encourages IDIs to ensure that their
pop-up notifications can be as accessible to screen reader users as any other web content.
4. Automated Teller Machines and Similar Devices
Proposed Rule
The FDIC proposed amendments to update § 328.4 signage requirements for
IDIs’ ATMs and other remote electronic facilities that receive deposits. The FDIC
sought to ensure that depositors receive necessary disclosures regarding deposit insurance
as banks continue to devise new ways to provide services to their customers. The
proposed rule intended to capture banking kiosks and other devices currently defined as
“Remote Service Facilities”35 that receive deposits. This section of the proposed rule was

35 “Remote Service Facility” includes any automated teller machine, cash dispensing machine, point-of-sale
terminal, or other remote electronic facility where deposits are received. 12 CFR 328.2(a)(1)(ii).
g kiosks and other devices currently defined as
“Remote Service Facilities”35 that receive deposits. This section of the proposed rule was

35 “Remote Service Facility” includes any automated teller machine, cash dispensing machine, point-of-sale
terminal, or other remote electronic facility where deposits are received. 12 CFR 328.2(a)(1)(ii).

39

not intended to address online and mobile banking channels, which are considered
“digital deposit-taking channels.”
The proposed rule would have required electronic display of the FDIC official
digital sign on IDIs’ ATM and like devices. The proposed rule provided that the official
FDIC sign must be electronically displayed clearly and conspicuously. ATMs and like
devices would be required, at a minimum, to display the FDIC official digital sign on the
home page or screen and each transaction page or screen relating to deposits.
The proposed rule would have further required electronic non-deposit signs where
an IDI’s ATM or like device both receives deposits for an IDI and offers access to non-
deposit products.36 In this instance, the ATM or like device would be required to clearly,
continuously, and conspicuously display electronic disclosures indicating that non-
deposit products are not insured by the FDIC, are not deposits, and may lose value. The
proposed rule would have required the display of these disclosures on each transaction
page or screen relating to non-deposit products.
Discussion of Comments
Generally, commenters expressed concern over the difficulty or cost in
implementing the proposed signage requirements for ATMs. Some commenters noted
that costs will disproportionately affect community banks who rely on third-party
vendors that provide ATM operating software; one commenter noted that software
changes take time, and these vendors would be expected to prioritize large banks
ts
Generally, commenters expressed concern over the difficulty or cost in
implementing the proposed signage requirements for ATMs. Some commenters noted
that costs will disproportionately affect community banks who rely on third-party
vendors that provide ATM operating software; one commenter noted that software
changes take time, and these vendors would be expected to prioritize large banks.
Another commenter noted that a handful of third-party vendors are utilized by many

36 The FDIC would not view postage stamps sold at ATMs to require these disclosures.

40

banks, and the proposed changes would create supply bottlenecks as digital platforms are
individualized for each bank. Three commenters specifically requested additional time –
ranging from at least one year to up to 18 months – in order to comply with any new
requirements imposed for physical or software signs on ATMs or similar devices.
Relatedly, another commenter urged the FDIC to consider allowing banks to use a
physical sign at their ATMs instead of an electronic one.
A few comments sought clarity or expressed concern on the scope of the proposed
ATM signage requirements. One commenter requested that the FDIC clarify whether the
proposed ATM provision would only apply to ATMs and similar devices that receive
deposits, excluding facilities that only provide balance, transfer, or withdrawal
capabilities. Another commenter requested that the FDIC exclude Interactive Teller
Machines (ITMs) from the ATM and like devices requirements as the commenter
believed that ITMs do not have any transaction screens visible and do not perform bank
branch functions. One commenter requested that the FDIC clarify whether non-deposit
signage requirements apply to the owner of the ATM and not the depository bank, if they
are not the same.
Commenters representing consumer groups were supportive of the proposed rule
changes relating to ATMs and similar devices
ed that ITMs do not have any transaction screens visible and do not perform bank
branch functions. One commenter requested that the FDIC clarify whether non-deposit
signage requirements apply to the owner of the ATM and not the depository bank, if they
are not the same.
Commenters representing consumer groups were supportive of the proposed rule
changes relating to ATMs and similar devices. One commenter believed the proposed
rules were beneficial because consumers do not have the opportunity to seek clarification
from bank employees at an ATM, like they would at a bank or bank branch. One
commenter advocated for more stringent signage requirements for ATMs, recommending
that the FDIC require IDIs to display disclosures on each screen that references a deposit
or non-deposit product.

41

Final Rule
The FDIC has carefully considered these comments and is adopting certain parts
of the proposed ATM signage requirements, with changes discussed below. The FDIC
appreciates the comments and concerns provided regarding the costs of the proposed
requirements and a need for additional time and the impact of potential changes on
community banks who often rely on third parties to support operating and maintaining
ATMs. The FDIC believes that the benefits of the new ATM signage requirements
outweigh the potential costs; however, additional flexibility is warranted in certain
situations. The new ATM requirements under the final rule will provide clear
information to consumers as to when they are engaging with insured deposit products and
when they are engaging with non-deposit products.
For an IDI’s ATM or like device that receives deposits but does not offer access
to non-deposit products, the final rule provides flexibility to meet the signage
requirement by either (1) displaying the FDIC official digital sign on ATM screens as
described in 328.5, or (2) displaying the physical official sign by attaching or posting it to
the ATM as described in § 328.2
-deposit products.
For an IDI’s ATM or like device that receives deposits but does not offer access
to non-deposit products, the final rule provides flexibility to meet the signage
requirement by either (1) displaying the FDIC official digital sign on ATM screens as
described in 328.5, or (2) displaying the physical official sign by attaching or posting it to
the ATM as described in § 328.2. However, IDIs’ ATMs or like devices that accept
deposits and are put into service after January 1, 2025 must display the official digital
sign (with no option to satisfy the requirement through display of the physical official
sign). This approach provides IDIs with flexibility, consistent with some comments the
FDIC received, and provides additional time to make related system and process
revisions and updates.
For an IDI’s ATM or like device that both receives deposits and offers access to
non-deposit products, the final rule requires that such ATMs must: (a) display the official

42

digital sign clearly, continuously, and conspicuously on the home page or screen and on
each transaction page or screen relating to deposits; and (b) clearly, continuously, and
conspicuously indicate that non-deposit products are not insured by the FDIC, are not
deposits, and may lose value on each transaction page or screen relating to non-deposit
products by January 1, 2025. The FDIC believes that clear signs differentiating the
insured and uninsured products is important in this setting because customers often
interact with ATMs alone, including when bank branches are closed or in areas that are
isolated or where there are no bank branches. In such situations bank customers would
not have an opportunity to ask clarifying questions of a bank representative or for bank
staff to ensure that customers fully understand whether a product is covered by FDIC
deposit insurance
tting because customers often
interact with ATMs alone, including when bank branches are closed or in areas that are
isolated or where there are no bank branches. In such situations bank customers would
not have an opportunity to ask clarifying questions of a bank representative or for bank
staff to ensure that customers fully understand whether a product is covered by FDIC
deposit insurance.
The final rule also provides that degraded or defaced physical official signs would
not meet the “clearly, continuously, and conspicuously” standard. For example, an
official sign defaced such that portions are illegible would not “clearly” signal or notify
consumers that they are dealing with an FDIC-insured depository institution’s
ATM. However, if an ATM’s physical digital sign is, for example, slightly diminished,
minimally blemished, or superficially damaged, these circumstances would be considered
de minimis for the purposes of determining whether a physical official sign meets the
“clearly, continuously, and conspicuous” standard for the purposes of compliance with
the final rule.
In addition, the final rule includes specific design features of the digital official
sign, including specifics about colors, size, and font which should assist in
implementation. In response to the comments on the scope of the rule, the final rule’s

43

ATM provisions apply to an IDI’s automated teller machines or other remote electronic
facilities that receive deposits. If an IDI’s remote electronic facility receives deposits and
is labeled an ITM (instead of an ATM), the official sign requirements in part 328 apply;
however, if an ITM does not receive deposits, it is not subject to the rule.
In some cases, where there is a deposit-taking ATM or like device, the owner of
the ATM and the IDI may not be the same
electronic
facilities that receive deposits. If an IDI’s remote electronic facility receives deposits and
is labeled an ITM (instead of an ATM), the official sign requirements in part 328 apply;
however, if an ITM does not receive deposits, it is not subject to the rule.
In some cases, where there is a deposit-taking ATM or like device, the owner of
the ATM and the IDI may not be the same. As noted above, § 328.4 applies to “IDIs’
automated teller machines or like devices.” In determining whether an ATM or like
device is an IDI’s, the FDIC will consider circumstances such as the ATM or like
device’s location, branding, whether it is operated by the IDI, and other factors that
reasonably indicate it is an IDI’s ATM. Under the final rule, for such in-scope ATMs
and like devices, the official digital sign and non-deposit signage requirements under §
328.4 apply.
In response to the comment on recommending more stringent requirements, the
FDIC does not consider more stringent signage requirements as necessary to achieve its
policy goals. For certain in-scope ATMs, the signage requirements under the final rule
apply to each transaction page or screen for deposits and, if applicable, non-deposit
products.
5. Official Advertising Statement for IDIs
Proposed Rule
The FDIC proposed limited amendments to the advertisement statement
requirements applicable to IDIs. Specifically, the FDIC proposed to expand IDIs’
options for use of a short advertising statement to include the term “FDIC-insured.”
Currently, IDIs must include the official advertising statement in all
e, non-deposit
products.
5. Official Advertising Statement for IDIs
Proposed Rule
The FDIC proposed limited amendments to the advertisement statement
requirements applicable to IDIs. Specifically, the FDIC proposed to expand IDIs’
options for use of a short advertising statement to include the term “FDIC-insured.”
Currently, IDIs must include the official advertising statement in all

44

advertisements that promote deposit products.37 The term advertisement means a
commercial message in any medium that is designed to attract public attention or
patronage to a product or business.38 The FDIC views this definition to include
advertising published through social media channels.
The current regulation allows IDIs to use the short title “Member of FDIC”,
“Member FDIC”, or a reproduction of the symbol of the corporation (defined in §
328.2(b)). In addition to these options, to provide additional flexibility, the proposed rule
would allow the use of “FDIC-insured”.
The FDIC also proposed to make a technical correction to the reference to the
deposit insurance limit found in paragraph (d)(10) of the current regulation, which states
that “deposits or depositors are insured by the Federal Deposit Insurance Corporation to
at least $100,000 for each depositor.”39 As a technical correction, the proposed rule
would instead reference the standard maximum deposit insurance amount (currently
$250,000), as established by Congress.
Discussion of Comments
A comment letter submitted by several non-profit organizations opposed the
addition of the term “FDIC-insured” for use as a shortened form of the official
advertising statement and suggested that IDIs continue to use the shortened forms of the
advertising statement found in the existing regulation (“Member of FDIC” or “Member
FDIC”)
50,000), as established by Congress.
Discussion of Comments
A comment letter submitted by several non-profit organizations opposed the
addition of the term “FDIC-insured” for use as a shortened form of the official
advertising statement and suggested that IDIs continue to use the shortened forms of the
advertising statement found in the existing regulation (“Member of FDIC” or “Member
FDIC”). The commenters stated that when IDIs offer products that are not FDIC-insured,
their use of the term “FDIC-insured” could be misleading and poses risk of consumer

37 12 CFR 328.3(c).
38 12 CFR 328.3(a).
39 12 CFR 328.3(d)(10).

45

confusion. The commenters asserted that the purported benefit to IDIs of increased
flexibility is not worth this risk of increased consumer confusion.
Final Rule
The FDIC appreciates the concern about risk of consumer confusion stemming
from use of the term “FDIC-Insured.” However, the FDIC believes that restrictions on
usage of the advertising statement (including a shortened form) in connection with non-
deposit products sufficiently mitigate any risk of consumer confusion.
Specifically, IDIs are prohibited from using the official advertising statement in
any advertisement relating solely to non-deposit products. IDIs are also prohibited from
using the official advertising statement in any advertisement relating solely to hybrid
products, which are products that have both deposit product features and non-deposit
product features. IDIs may use the official advertising statement in advertisements
containing information about both insured deposit products and non-deposit or hybrid
products, but are required to clearly segregate the official advertising statement from any
portion of the advertisement that relates to the non-deposit products. These restrictions
are part of the existing regulation and were included in the proposed rule
the official advertising statement in advertisements
containing information about both insured deposit products and non-deposit or hybrid
products, but are required to clearly segregate the official advertising statement from any
portion of the advertisement that relates to the non-deposit products. These restrictions
are part of the existing regulation and were included in the proposed rule. The FDIC is
including these same restrictions in the final rule, meaning that consumers should not, for
example, see statements indicating that a particular IDI is “FDIC-Insured” made in
connection with advertisements related solely to non-deposit products.
The FDIC is finalizing the advertising statement provisions of the final rule as
proposed. Under the final rule, IDIs will have the option to use “FDIC-Insured” as a
short form of the official advertising statement to satisfy advertising statement
requirements. Subject to limited exceptions, IDIs are required to include the official

46

advertising statement in all advertisements that promote either deposit products and
services or non-specific banking products and services offered by the institution. The
advertising statement must be in a size and print to be clearly legible.
In addition, as noted in the proposed rule, the FDIC does not intend for the digital
sign requirement to overlap with the general advertising statement requirements that
apply to IDIs. For example, the advertising statement would not be required on web
pages where an IDI displays the digital official sign, such as a homepage. In these
situations, under section 328.6(d)(10), the advertising statement is unnecessary because
the inclusion of the digital official sign makes it clear that the IDI is insured by the FDIC.
However, IDIs remain responsible for complying with the official advertising statement
requirements for other qualifying advertisements, including those contained on other web
pages
uch as a homepage. In these
situations, under section 328.6(d)(10), the advertising statement is unnecessary because
the inclusion of the digital official sign makes it clear that the IDI is insured by the FDIC.
However, IDIs remain responsible for complying with the official advertising statement
requirements for other qualifying advertisements, including those contained on other web
pages.
As under existing regulations, the final rule provides that a non-English
equivalent of the official advertising statement may be used in any advertisement,
provided that the translation has the prior written approval of the FDIC. The FDIC is
also considering making available to the public approved translations of the official
advertising statement in several common languages on its website or through other means
in the future to support IDIs’ efforts to communicate with their non-English-speaking
customers.
6. Misrepresentations and Material Omissions by Any Person
Proposed Rule
Section 18(a)(4) of the FDI Act,40 and its implementing regulations in subpart B

40 See 12 U.S.C. 1828(a)(4).

47

to part 328,41 prohibit any person from misusing the name or logo of the FDIC, engaging
in false advertising, and making knowing misrepresentations about deposit insurance. In
the NPR, the FDIC stated that it may be beneficial to provide further clarity on the
application of the statutory prohibition on misrepresentations in specific situations where
consumers may be misled as to whether an entity is insured by the FDIC and the nature
and extent of deposit insurance coverage. The FDIC proposed to amend subpart B to
expressly address these situations, making clear when specific statements or omissions
constitute a misrepresentation under section 18(a)(4)
cation of the statutory prohibition on misrepresentations in specific situations where
consumers may be misled as to whether an entity is insured by the FDIC and the nature
and extent of deposit insurance coverage. The FDIC proposed to amend subpart B to
expressly address these situations, making clear when specific statements or omissions
constitute a misrepresentation under section 18(a)(4).
Use of the Official Advertising Statement or FDIC-Associated Terms or Images
Consumers have historically identified the use of the official advertising statement
(such as “Member FDIC”), FDIC-Associated Terms, or FDIC-Associated Images to
signify that they are dealing with an IDI and will receive the protection of FDIC deposit
insurance. The official advertising statement, FDIC-Associated Terms, and FDIC-
Associated Images have increasingly been used by non-banks that purport to deposit their
customers’ funds at IDIs. As discussed in the NPR, the FDIC believes that use of the
official advertisement, FDIC-Associated Terms, or FDIC-Associated Images in such
instances presents a high risk of confusing consumers as to whether they are dealing with
an IDI and whether deposit insurance applies to their funds.
To address this risk, the proposed rule would have amended § 328.102(a) and §
328.102(b) to clarify specific circumstances under which use of the official advertising
statement, FDIC-Associated Terms, or FDIC-Associated Images by a non-bank would
constitute a misrepresentation of insured status as it would inaccurately imply that the

41 See 12 CFR §§ 328.100 through 328.109.
ed rule would have amended § 328.102(a) and §
328.102(b) to clarify specific circumstances under which use of the official advertising
statement, FDIC-Associated Terms, or FDIC-Associated Images by a non-bank would
constitute a misrepresentation of insured status as it would inaccurately imply that the

41 See 12 CFR §§ 328.100 through 328.109.

48

non-bank is FDIC-insured. For example, under the proposed rule, a non-bank’s use of
the “Member FDIC” logo on its website or in its marketing materials would have been a
misrepresentation unless that logo is next to the name of one or more IDIs. The NPR also
stated that a non-bank’s use of either the FDIC official sign or the FDIC official digital
sign would be a misrepresentation if it inaccurately implies that the non-bank is insured
by the FDIC and backed by the full faith and credit of the U.S. Government. Similarly,
the NPR stated that a non-bank’s use of FDIC-Associated Terms in statements suggesting
that the non-bank is insured by the FDIC would constitute a misrepresentation.42
Failure to Disclose that a Person is a Non-Bank is a Material Omission When a
Statement is Made Regarding Deposit Insurance
Non-banks that purport to deposit their customers’ funds at IDIs sometimes make
statements regarding deposit insurance coverage for those funds. Absent additional
context, to the extent such statements suggest that FDIC deposit insurance will protect
consumers in the event of the non-bank’s insolvency, they likely misrepresent the insured
status of the non-bank. To minimize the risk of consumer confusion, the proposed rule
provided that if a non-bank makes statements regarding deposit insurance for its
customers, it is a material omission for the non-bank to fail to clearly and conspicuously
disclose that it is not itself an FDIC-insured institution and that the FDIC’s deposit
insurance coverage only protects against the failure of an FDIC-insured depository
institution
of consumer confusion, the proposed rule
provided that if a non-bank makes statements regarding deposit insurance for its
customers, it is a material omission for the non-bank to fail to clearly and conspicuously
disclose that it is not itself an FDIC-insured institution and that the FDIC’s deposit
insurance coverage only protects against the failure of an FDIC-insured depository
institution. In the NPR, the FDIC stated that this additional disclosure is necessary to
prevent consumers from misinterpreting a non-bank’s assertions regarding deposit

42 These examples are intended to be illustrative, rather than an exhaustive list of ways in which a non-bank
might misrepresent its insured status. Any use of the official advertising statement, FDIC-Associated
Terms, or FDIC-Associated Images that inaccurately states or implies that the non-bank is insured by the
FDIC will violate the final rule.

49

insurance coverage. The FDIC noted that some non-banks already include such language
on their websites, often identifying the partner IDI through which banking services are
provided.43 The proposed rule did not prescribe specific disclosure language; however, it
explained that a statement that a person is not an FDIC-insured bank and deposit
insurance covers the failure of an insured bank would be considered a clear statement for
purposes of this provision. The proposed rule aimed to give non-banks that wish to make
statements regarding deposit insurance coverage some flexibility in how they
communicate the required information.
Failure to State that Non-Deposit Products are Not Insured by the FDIC is a Material
Omission When a Statement is Made Regarding Deposit Insurance
The FDIC’s experience suggests that deposits and non-deposit products are
increasingly being offered to consumers in ways that fail to distinguish which products
are insured by the FDIC
lexibility in how they
communicate the required information.
Failure to State that Non-Deposit Products are Not Insured by the FDIC is a Material
Omission When a Statement is Made Regarding Deposit Insurance
The FDIC’s experience suggests that deposits and non-deposit products are
increasingly being offered to consumers in ways that fail to distinguish which products
are insured by the FDIC. For instance, marketing materials might emphasize the deposit
insurance protection that applies to some products while failing to make clear that not all
of the products offered are FDIC-insured. In other instances, firms have represented to
their customers that non-deposit products are eligible for deposit insurance coverage,
which has led consumers to believe, mistakenly, that their money or investments are
protected by deposit insurance. In the NPR, the FDIC stated it believes that where banks
or non-banks make statements regarding deposit insurance in a context where deposits
and non-deposit products are involved, additional information is necessary to ensure that
consumers understand which products are subject to deposit insurance. To prevent
consumer confusion, the proposed rule provided that if a person makes statements

43 For example, “ABC Co. is not an FDIC-insured depository institution; banking services provided by
XYZ Bank, Member FDIC.”

50

regarding deposit insurance in a context that involves both deposits and non-deposit
products, it is a material omission to fail to disclose that non-deposit products are not
insured by the FDIC, are not deposits, and may lose value
43 For example, “ABC Co. is not an FDIC-insured depository institution; banking services provided by
XYZ Bank, Member FDIC.”

50

regarding deposit insurance in a context that involves both deposits and non-deposit
products, it is a material omission to fail to disclose that non-deposit products are not
insured by the FDIC, are not deposits, and may lose value. For example, under the
proposed rule, if a non-bank’s website offered customers the option to have their funds
deposited at an IDI and protected by deposit insurance or invested in non-deposit
products, it would be a material omission if the non-bank’s website failed to state that the
non-deposit products are not insured by the FDIC, are not deposits, and may lose value.
Failure to State that Requirements Apply to Pass-Through Deposit Insurance
The FDIC has a long history of providing “pass-through” deposit insurance
coverage, meaning that deposits placed at an IDI by a third party on behalf of one or
more owners are insured as if deposited directly at the IDI by the owner(s). Pass-through
insurance allows each owner of the funds in such an arrangement to be separately insured
up to the statutory deposit insurance limit, currently $250,000, even if the total deposits
of all owners (in the aggregate) exceeds the $250,000 limit. Pass-through insurance only
applies, however, if certain regulatory requirements are satisfied.44
Arrangements that rely on pass-through insurance have become increasingly
common, with non-banks often claiming to provide the protection of pass-through deposit
insurance for consumers’ funds. Such representations, however, may be inaccurate,
mislead consumers, and fail to apprise them of the risk they face in the event that the

44 See 12 CFR 330.5, 330.7. For pass-through deposit insurance to apply, a consumer’s funds must first be
on deposit at an IDI
provide the protection of pass-through deposit
insurance for consumers’ funds. Such representations, however, may be inaccurate,
mislead consumers, and fail to apprise them of the risk they face in the event that the

44 See 12 CFR 330.5, 330.7. For pass-through deposit insurance to apply, a consumer’s funds must first be
on deposit at an IDI. In addition: (1) the deposit account records of the IDI must disclose a basis for pass-
through coverage, such as a custodial or agency relationship; (2) the identities and interests of the actual
owners of the funds must be ascertainable either from the records of the IDI or records maintained in good
faith and in the regular course of business by another party; and (3) the relationship that provides the basis
for pass-through deposit insurance coverage must be genuine, with the deposited funds actually owned by
the named owners. Additional requirements apply to arrangements involving multiple levels of
relationships.

51

pass-through deposit insurance requirements have not been satisfied. If the pass-through
requirements are not met, consumers’ funds may not be fully insured in the event the IDI
where their funds have been deposited were to fail. In the NPR, the FDIC would have
required that parties that make statements regarding the application of pass-through
deposit insurance make additional disclosure to promote awareness of this risk.
The proposed rule provided that if a person makes statements regarding pass-
through deposit insurance for its customers’ funds, it is a material omission to fail to
clearly and conspicuously disclose that certain conditions must be satisfied for pass-
through deposit insurance coverage to apply. The proposed rule would not require a
person making a statement regarding pass-through deposit insurance to list the specific
conditions that must be satisfied; simply referencing that conditions must be satisfied
would be sufficient under the proposed rule
il to
clearly and conspicuously disclose that certain conditions must be satisfied for pass-
through deposit insurance coverage to apply. The proposed rule would not require a
person making a statement regarding pass-through deposit insurance to list the specific
conditions that must be satisfied; simply referencing that conditions must be satisfied
would be sufficient under the proposed rule. The proposed rule also did not prescribe
specific disclosure language, providing flexibility in how parties may wish to express the
required information. For example, under the proposed rule, if a website for a financial
product were to state that consumers’ funds are eligible for pass-through deposit
insurance, it would be a material omission to fail to clearly and conspicuously state that
certain conditions must be satisfied in order for pass-through insurance to apply.
Discussion of Comments
Some commenters recommended that the rule require entities to disclose certain
information that they believed was necessary to avoid material omissions when making
statements about deposit insurance. For example, one commenter suggested that the
FDIC impose several specific requirements, presumptions, and enforcement practices on
any advertising relating to digital assets. Another commenter suggested that the FDIC

52

prohibit non-banks from using the words “banking” and “bank account” to describe their
products or services offered, and that a non-bank’s failure to comply should constitute a
material omission.
With respect to statements referencing deposit and non-deposit products, one
commenter suggested that the FDIC should make clear that comparing an uninsured
financial product to an insured one without clearly and conspicuously noting the
difference in insurance status is a misrepresentation. Another commenter similarly
suggested that it would be a material omission for a non-bank to fail to disclose that its
non-deposit products are n

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FDIC_FIL24056. Check the current official text before relying on it. Not legal advice.