FDIC Update

What is the current FDIC Insurance limit?

The FDIC’s general deposit insurance rules provide insurance coverage for deposits up to $250,000 per depositor.  Coverage includes deposits in checking accounts, savings accounts, money market savings accounts and Certificates of Deposit.  The FDIC provides separate coverage for deposits held in different account ownership categories.

In addition, separate insurance up to $250,000 per owner is provided for deposits in bank individual retirement accounts (IRA’s).

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.

To determine your deposit insurance, call the FDIC at 1-877-275-3342, or go to https://www2.fdic.gov/edie/index.html.  For more information about FDIC insurance coverage of transaction accounts, visit http://www.fdic.gov.