Temporary Changes to FDIC Deposit Insurance Coverage
The standard insurance amount of $250,000 per depositor is in effect
through December 31, 2013. On January 1, 2014, the standard insurance
amount will return to $100,000 per depositor for all account categories
except IRAs and other certain retirement accounts, which will remain
at $250,000 per depositor.
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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