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FDIC Info

NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS

Who is the FDIC?

What does the FDIC insure?

What is the Insurance Limit?

I have accounts in multiple ownership categories at a financial institution. The combined value of the accounts exceeds the basic insurance amount of $250,000. Are all of my funds insured?

Where can I get more information about FDIC insurance?


NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS - Back to top
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing 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.

The term “noninterest-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.

For more information about temporary FDIC insurance coverage of transaction accounts, visit http://www.fdic.gov/deposit/deposits/unlimited/expiration.html

Who is the FDIC? - Back to top
The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system in the following ways:

  • By insuring deposits in banks and thrift institutions for up to $250,000.
  • By identifying, monitoring, and addressing risks to the deposit insurance funds.
  • By limiting the effect on the economy and the financial system when a bank or thrift institution fails.
What does the FDIC insure? - Back to top
The FDIC insures all traditional types of deposit accounts (checking, savings, NOW, trust, money market, CDs) up to $250,000. Investment products (mutual funds, annuities, life insurance policies, stocks and bonds) are not FDIC insured, may lose value, and are not bank guaranteed.

What is the Insurance Limit? - Back to top
The basic deposit accounts insurance limit amount is $250,000 per depositor per insured bank. Certain retirement accounts (such as Individual Retirement Accounts [IRAs]) are insured up to $250,000 per depositor per insured bank. If you and your family have a combined amount of $250,000 or less in all of your deposit accounts categories at the same insured bank, you do not need to worry about your insurance coverage, as your deposits are fully insured.

I have accounts in multiple ownership categories at a financial institution. The combined value of the accounts exceeds the basic insurance amount of $250,000. Are all of my funds insured? - Back to top
For customers with accounts in multiple ownership categories at a single financial institution, FDIC coverage is based on the ownership of the deposited funds and the deposit insurance category of accounts, not the number of accounts. Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured. For example, a customer who owns a checking account and a CD titled in his or her own name as single owner will receive a total of $250,000 of combined coverage for both accounts. But if that same customer also has a joint account (which is a separate category from individual accounts), he or she could receive an additional $250,000 of insurance for the funds held in the joint account.

Where can I get more information about FDIC insurance? - Back to top
You may visit a banking center or contact the customer support center to obtain a copy of the "FDIC- Your Insured Deposits" brochure and the "Profiles in Coverage" brochure. You may also call the FDIC at 1.877.ASK.FDIC (1.877.275.3342) or by visiting www.fdic.gov. Maximize your FDIC coverage for your personal situation by visiting www.fdic.gov/edie/ for a coverage calculator.

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