fdic

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*

Single Accounts (owned by one person)	$250,000 per owner*
Joint Accounts (two or more persons)	$250,000 per co-owner*
IRAs and certain other Retirement accounts	$250,000 per owner*
Trust Accounts	$250,000 per owner per beneficiary Subject to specific limitations and requirements*
Non-interest bearing transaction Deposit accounts	Full deposit insurance coverage regardless of the dollar amount

FDIC Coverage of Accounts and Example Account Analysis
Common Ownership Categories
Single Accounts
Certain Retirement Accounts
Joint Ownership Accounts
Revocable Trust Accounts

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.
Note: Retirement accounts and qualifying trust accounts are not included in this ownership category.
Certain Retirement Accounts: These are deposit accounts owned by one person and titled in the name of that person’s retirement plan. Only the following types of retirement plans are insured in this ownership category:

• Individual Retirement Accounts (IRAs) including traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plans for Employees (SIMPLE) IRAs

• Section 457 deferred compensation plan accounts (whether self-directed or not)

• Self-directed defined contribution plan accounts

• Self-directed Keogh plan (or H.R. 10 plan) accounts

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.
Naming beneficiaries on a retirement account does not increase deposit insurance coverage.
Joint Ownership Accounts: These are deposit accounts owned by two or more people. If both owners have equal rights to withdraw money from a joint account, each person’s shares of all joint accounts at the same insured bank are added together and the total is 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.
Funds deposited into revocable trust accounts, whose beneficiaries are a natural person, or a charity, or other non-profit organization, are separately insured to $250,000 per beneficiary (in addition to the insurance on valid individual joint and non-interest-bearing transaction accounts). They provide that, at the death of the owner, funds will pass to a named beneficiary.

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

 

A Sample Scenario
Account Holders & Owners	Ownership Category	Product	Product Type	Balance	Amount Insured	Uninsured Amount
Tom Jones	Single Account	Checking	Interest-bearing	$125,000	$125,000	N/A
Tom Jones	Single Account	Savings	Interest-bearing	$125,000	$125,000	N/A
Tom & Matilda Jones	Joint Account	CD	Interest-bearing	$520,000-Total	$500,000	$20,000
				$260,000-Tom
				$260,000-Matilda
Matilda Jones	Retirement Account	IRA	Interest-bearing	$300,000	$250,000	$50,000
			Subtotal	$1,070,000	$1,000,000	$70,000
Transaction Account Example:
Tom Jones	Single Account	Business Checking	Non-interest-bearing	$350,000	$350,000	N/A
Tom & Matilda Jones	Joint Account	Checking	Non-interest-bearing	$170,000	$170,000	N/A
			Subtotal	$520,000	$520,000	N/A
			Total	$1,590,000	$1,520,000	$70,000