Notice - FDIC Increases Coverage


NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a noninterest-bearing transaction account are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term noninterest-bearing transaction account includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (IOLTAs). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov .

FDIC GENERAL DEPOSIT INSURANCE RULES

Deposit accounts are now FDIC insured up to $250,000 per depositor more than double the former account coverage limit.

Effective July 21, 2010 President Obama signed into law The Dodd-Frank Wall Street Reform and Consumer Protection Act which increased FDIC coverage permanently. Deposit accounts are now FDIC insured up to $250,000 per depositor.

  • Single accounts are insured up to $250,000
  • Joint accounts (50/50 ownership) are insured up to $500,000 ($250,000 for each individual)
  • IRA deposits are insured up to $250,000 per plan depositor
  • Accounts that are registered in a Living Trust are insured up to $250,000 per owner, per beneficiary

Here is an example of how you could be covered up to $1,000,000:

Account Owner Deposit Type Account Balance
Jane Bank Savings Account $250,000
John Bank Savings Account $250,000
Jane and John (50/50 Ownership) Bank Savings Account $500,000 ($250,000 per person)
Total Deposits $1,000,000
Amount Insured $1,000,000

Deposit types include Bank Checking Accounts, Money Market Accounts, Savings Accounts, IRA Savings and CDs.

Coverage

Learn more on how you can make the most of your coverage.

Visit the FDIC Home page.