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 Insurance and your sweep account

 

If you have a sweep arrangement in connection with the noninterest-earning checking account you have with us, and funds are transferred to any interest-earning account that does not qualify for full deposit insurance coverage under the FDIC this action voids the FDIC’s guarantee with respect to the swept or transferred funds.