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, the 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 RULES
The FDIC’s general deposit rules include the following:
- Congress permanently increased FDIC deposit insurance from $100,000 to $250,000.
- The $250,000 amount applies to all depositors of an insured bank.
- Deposits in separate branches of an insured bank are NOT separately insured.
- Deposits in one insured bank are insured separately from deposits in another insured bank.
- Deposits maintained in different categories of legal ownership at the same bank can be separately insured.
- Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured.