FDIC DEPOSIT INSURANCE
Are You Covered?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in FDIC-insured institutions.
There is no need for depositors to apply for FDIC insurance or even to request it; coverage is automatic. FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit.
The FDIC guarantees deposit accounts (checking, savings, money market and CDs) up to the maximum allowed by law. The Dodd-Frank Wall Street Reform and Consumer Protection Act signed by President Barack Obama on July 21, 2010, made permanent the current standard maximum deposit insurance amount (SMDIA) of $250,000. The FDIC coverage limit applies per depositor, per insured depository institution, for each account ownership category.
Investment products (mutual funds, annuities, life insurance policies, stocks and bonds) are not FDIC insured, may lose value, and are not bank guaranteed.
NOTICE OF CHANGE 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 additional 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
The FDIC provides separate coverage for deposits held in different account ownership categories. To ensure funds are fully protected, depositors should understand their coverage limits. You can calculate your insurance coverage using the FDIC's Electronic Deposit Insurance Estimator. For questions about FDIC coverage, call toll-free 1-877-ASK-FDIC visit www.fdic.gov or ask a bank representative.
