Temporary Changes to FDIC Deposit Insurance Coverage
Effective October 3, 2008, the basic limit on federal deposit insurance
coverage was temporarily increased from $100,000 to $250,000 per depositor
through December 31, 2009. On January 1, 2010, FDIC deposit insurance
for all deposit accounts—except for certain retirement accounts—will
return to at least $100,000 per depositor. Insurance coverage for certain
retirement accounts, which include all IRA deposit accounts, was increased
permanently to $250,000 per depositor in 2006.
On October 14, 2008, the FDIC announced its temporary Transaction
Account Guarantee Program, providing depositors with unlimited coverage
for noninterest-bearing transaction accounts if their bank is a participant
in the FDIC’s Temporary Liquidity Guarantee Program. 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 low-interest NOW accounts that cannot earn more than
0.5% interest. Interest-bearing accounts include NOW accounts that
can earn more than 0.5% interest, other interest-bearing checking accounts,
Money Market Deposit Accounts (MMDAs), savings accounts, and Certificates
of Deposit (CDs). This program is scheduled to end on December 31,
2009.
The discussion and examples of deposit insurance coverage in this
brochure assume deposits are held in interest-bearing accounts.
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