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 DEPOSIT INSURANCE SIMPLIFICATION
FACT SHEET
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the
United States government that protects the funds depositors place in banks and savings
associations. FDIC insurance is backed by the full faith and credit of the United
States government. Since the FDIC was established in 1933, no depositor has ever
lost a single penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including checking and savings accounts,
money market deposit accounts and certificates of deposit. FDIC insurance does not
cover other financial products and services that banks may offer, such as stocks,
bonds, mutual fund shares, life insurance policies, annuities or securities.
The standard insurance amount is $250,000 per depositor, per insured bank, for each
account ownership category. The FDIC provides separate coverage for deposits held
in different account ownership categories. Depositors may qualify for more coverage
if they have funds in different ownership categories and all FDIC requirements are
met. (For details on the requirements, go to www.fdic.gov/deposit/deposits.)
The following chart shows standard insurance amounts for FDIC account ownership
categories. All deposits that an accountholder has in the same ownership category
at the same bank are added together and insured up to the standard insurance amount.
The standard maximum insurance amount currently is $250,000 per depositor, per insured
bank, for each account ownership category. Effective July 22, 2010, the $250,000
limit is permanent.
FDIC Deposit Insurance Coverage Limits1
|
Ownership Category
|
Coverage Limit
|
|
Single Accounts
owned by one person
|
$250,000 per owner
|
|
Joint Accounts
owned by two or more persons
|
$250,000 per co-owner
|
|
Certain Retirement Accounts
includes IRAs
|
$250,000 per owner
|
|
Revocable Trust Accounts
|
$250,000 per owner per beneficiary up to 5 beneficiaries
(more coverage available with 6 or more beneficiaries subject to specific limitations
and requirements)
|
|
Corporation, Partnership and Unincorporated Association
Accounts
|
$250,000 per corporation, partnership or unincorporated
association
|
|
Irrevocable Trust Accounts
|
$250,000 for the non-contingent, ascertainable interest
of each beneficiary
|
|
Employee Benefit Plan Accounts
|
$250,000 for the non-contingent, ascertainable interest
of each plan participant
|
|
Government Accounts
|
$250,000 per official custodian
|
|
To calculate your deposit insurance
coverage
Use the FDIC’s Electronic Deposit Insurance
Estimator (EDIE) at: www.fdic.gov/edie.
|
|
For questions about FDIC coverage
limits and requirements
Visit www.fdic.gov/deposit/deposits, call toll-free 1-877-ASK-FDIC,
or ask a bank representative.
|
|
1Beginning December 31, 2010 through December 31, 2012, deposits
held in noninterest-bearing transaction accounts will be fully insured, regardless
of the amount in the account, at all FDIC-insured institutions.
|
|
|
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