Q: I had some CDs with IndyMac Bank and was just waiting for them to mature until a friend told me that I needed to contact the Federal Deposit Insurance Corporation ASAP. Is this correct and if so, how do I go about contacting them and what do I need to tell them?

A: Deposits that are payable in the United States are protected in the event of a bank failure if the bank is a member of the FDIC.

All types of deposits received by an insured financial institution in its usual course of business are insured. This includes, but is not limited to, certificates of deposit (CDs) and checking and savings accounts. Stocks, bonds, mutual funds and other investment-oriented assets are not covered by deposit insurance.

In general, this insurance coverage is limited to deposits of $100,000 ($250,000 if in an IRA) or less. IndyMac was a member of the FDIC, which formed a new bank, IndyMac Federal Bank, and transferred all insured deposits. Your need for action depends on the ownership of your accounts and the dollar amounts.

If your total CD amounts did not exceed the limits and you purchased them directly from the bank, no action is required. The interest rate on the CD will continue to accrue until the maturity date.

If the amounts are within the limits and you purchased them through a broker, you need to verify that the brokerage is filing the proper paperwork. A CD purchased through a brokerage stopped earning interest July 11, and the funds won't be in your brokerage account until all the required documentation is received by the FDIC.

If the value of your CDs is more than the limit, a portion may be uninsured and documentation will be required. A review with a FDIC claim agent may also be required. A receiver certificate will be issued for any uninsured portion and you will receive a share of any funds recovered through the sale of IndyMac's assets.

Amounts over the limits may be insured if they had different categories of legal ownership. The most common categories of ownership are single, joint and testamentary. Single or individual accounts are owned by one person including those in the owner's name, established for the benefit of the owner by agents, nominees, guardians, custodians or conservators. Business accounts established by a sole proprietor are also deemed individual accounts. All single accounts held at one institution are added together and the total is insured up to $100,000.

When determining the $100,000 insured amount, the accrued interest through the date of the financial institution's failure is included when calculating overage.

If you had an account owned by two or more individuals, it would be insured separately from individual accounts if the following conditions are met:

* All co-owners must be natural persons, meaning corporations, partnerships or other legal entities are not eligible for joint account deposit insurance coverage.

* Each co-owner must have an equal right to withdraw funds.

* Each co-owner must have personally signed a deposit account signature card.

The third requirement is not needed for jointly owned CDs, deposit obligations evidenced by a negotiable instrument or accounts maintained by an agent, nominee, guardian, custodian or conservator. Each person's share of the account is deemed equal unless stated otherwise on the deposit account record. The interests of each individual in all joint accounts he or she owns at the same FDIC-insured depository institution are added together and insured up to $100,000.

Retirement accounts are separately insured from any nonretirement funds at an institution. But IRA, self-directed retirement plans (such as Keoghs) and Roth IRAs are added together, and the combined total will be insured up to $100,000.

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