FDIC

FDIC Deposit Insurance Coverage

New FDIC Deposit Insurance Limits

Effective, July 22, 2010, the FDIC has permanently raised the current standard maximum deposit insurance amount to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

Consumers and bankers can find additional information regarding FDIC’s deposit insurance coverage through the use of the FDIC’s Electronic Deposit Insurance Estimator (EDIE) and deposit insurance publications located on the FDIC’s website “Are My Deposits Insured?” @ http://www.fdic.gov/deposit/deposits/index.html.

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.

Important notice for non-interest-bearing transaction accounts with an overnight sweep feature

A non-interest-bearing transaction deposit account may include an overnight sweep of the funds into an interest bearing account (such as a savings account or a Money Market Account). For these accounts only, from the time that the funds are “swept from” the non-interest-bearing transaction account, until the time that the funds are “swept back” into the non-interest-bearing transaction account, the unlimited coverage does NOT apply.