Changes
to FDIC Deposit Insurance Coverage
The standard insurance amount is $250,000
per depositor, per insured bank,
for each ownership category.
The FDIC’s temporary Transaction Account Guarantee
(TAG) Program provides depositors with unlimited coverage for
noninterest-bearing transaction accounts at participating FDIC-insured
institutions.
Noninterest-bearing checking accounts include Demand Deposit
Accounts (DDAs) and any transaction
account that has unlimited withdrawals and that cannot earn
interest.
Also included are IOLTA accounts (regardless of the interest
rate) and NOW accounts that do not earn more than 0.25% interest.
This unlimited protection is only available
at insured depository institutions
that continue to participate in the TAG Program. The program
is temporary and will remain in effect through December 31,
2010, unless extended
by the FDIC.
Beginning 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.
The discussion and examples of deposit insurance coverage in this
brochure assume deposits are held in interest-bearing accounts. |
