NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS:
All funds in a "noninterest-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 "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 www.fdic.gov
FDIC Deposit Insurance Permanently Increased:
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
To learn more about the extension visit: http://www.fdic.gov/news/news/press/2010/pr10161.html FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CD’s).
Basic FDIC Deposit Insurance Coverage Limits*
FDIC Coverage of Accounts and Example Account Analysis
Single Accounts: These are deposit accounts owned by one person and titled in that person’s name only. All of your single accounts at the same insured bank are added together and the total is insured up to $250,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $250,000.
All deposits that an individual has in any of the types of retirement plans listed above at the same insured bank are added together and the total is insured up to $250,000. For example, if an individual has an IRA and a self-directed Keogh account at the same bank, the deposits in both accounts would be added together and insured up to $250,000.
Business Accounts: In general, business accounts receive $250,000 in FDIC insurance. This includes municipalities.
Please note, however, that funds owned by a business that is a sole proprietorship are NOT insured under this category. Rather, they are insured as the single account funds of the person who is the sole proprietor. So, funds deposited in the sole proprietorship's name are added to any other single accounts of the sole proprietor and the total is insured to a maximum of $250,000 in interest-bearing accounts.
Revocable Trust Accounts (Testamentary, Payable on Death or ITF)
The bank offers In Trust For (ITF) accounts. This type of account signifies the intention that the funds will belong to a named beneficiary on the death of the owner (grantor or depositor) of the account.
Determining coverage for living trust accounts (a type of Revocable Trust Account) can be complicated and requires more detailed information about the FDIC's insurance rules. If you have a living trust account, contact the FDIC at 1-877-275-3342 for more information.
For more information about FDIC coverage, visit the FDIC website at www.FDIC.gov or access the Electronic Deposit Insurance Estimator (EDIE the Estimator), an online tool that provides customized information about your insured accounts. The estimator is located at http://myfdicinsurance.gov. You may also call toll-free 877-ASK-FDIC for assistance, or speak to a CenTrust Banker: 847-267-1331