Each depositor insured to at least $250,000 per insured bank

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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Summer 2010

$250,000 Federal Deposit Insurance Amount Now Permanent
New consumer protection bureau also part of major reform law

The far-reaching financial reform law approved by Congress and signed by President Obama in July includes a variety of new protections for bank customers, including a permanent increase in the basic federal deposit insurance limit from at least $100,000 to at least $250,000 per depositor. Under prior law, the basic federal deposit insurance limit was set to revert back to $100,000 on January 1, 2014.

"With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs (certificates of deposit) above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013," said FDIC Chairman Sheila C. Bair.

The permanent $250,000 insurance limit also will be especially helpful for consumers who have more than $100,000 on deposit and would like to consider a new CD that would mature after year-end 2013. "Now consumers can make their decisions about long-term CDs without worrying about what their insurance coverage will be in 2014 or 2015," said FDIC attorney Joe DiNuzzo.

In addition, the law created a new temporary program, similar to the FDIC's temporary program already in effect, that will provide full insurance coverage for deposits in noninterest-bearing transaction accounts at all insured banks, regardless of the dollar amount. The new program is scheduled to run for two years beginning December 31, 2010. While these transaction accounts are primarily used by businesses with large balances in their checking accounts, any depositor can qualify.

"We strongly encourage all bank depositors who have questions about their insurance coverage to go to our Web site at www.fdic.gov and use our Electronic Deposit Insurance Estimator (EDIE) or call our toll-free number at 1-877-ASK-FDIC," added Chairman Bair. "Insured deposits provide the comfort and peace of mind to depositors that their money is 100 percent safe — provided they keep their deposit balances within the insurance limits."

Other consumer protections in the massive new law include the creation of an independent Consumer Financial Protection Bureau located within the Federal Reserve System to monitor and regulate financial services such as debit cards, credit cards and mortgages. For updates on significant changes in federal rules and industry practices, stay tuned to FDIC Consumer News.

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Last Updated 8/23/2010