NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS.
All funds in a "non-interest-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
"non-interest-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.
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterestbearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance
Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts at an
insured depository institution, including all noninterest-bearing transaction accounts,will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.
For more information about FDIC insurance coverage of noninterest-bearing transaction
accounts, visit http://www.fdic.gov/deposit/deposits/unlimited/expiration.html.
For more information about FDIC deposit insurance coverage, visit www.fdic.gov.