NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS
NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS
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.
For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.
FDIC GENERAL DEPOSIT RULES
The FDIC’s general deposit rules include the following:
- Congress permanently increased FDIC deposit insurance from $100,000 to $250,000.
- The $250,000 amount applies to all depositors of an insured bank.
- Deposits in separate branches of an insured bank are NOT separately insured.
- Deposits in one insured bank are insured separately from deposits in another insured bank.
- 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.