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FDIC Insurance: Are You Maximizing Your Coverage ???????
In September, 2008, the FDIC made the first of many changes to its traditional deposit insurance program. These changes were designed to remind the public that the FDIC’s resources are strong and that no depositor has ever lost a penny of insured deposits. Insured deposits are absolutely safe.
We at Sterling Bank want to make certain our customers are maximizing the coverage available through the changes in FDIC insurance guidelines. Many of you have already received calls from Bank staff to review your deposit accounts and make certain adequate coverage is in place. If you haven’t been contacted and have concerns, please feel free to reach out to your branch or corporate services representative for assistance.
Here is a brief chronological summary of changes to FDIC insurance coverage
The FDIC extended its temporary Transaction Account Guarantee Program through June 30, 2010. This program provides depositors with unlimited coverage for noninterest-bearing transaction accounts at participating FDIC-insured institutions. The unlimited coverage applies to all personal and business checking deposit accounts that do not earn interest (including Demand Deposit (DDA) accounts), low-interest NOW accounts (NOW accounts that cannot earn more than 0.5% interest), Official Items, and IOLTA accounts. Note: This EXCLUDES money market accounts even if the yield is below 0.5%. Money market accounts are NOT considered transaction accounts.
For more information, visit:
http://www.fdic.gov/news/news/financial/2009/fil09048.html
Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts (including IRAs) which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)
For more information visit:
http://www.fdic.gov/news/news/financial/2009/fil09022.html
FDIC announced its temporary Transaction Account Guarantee Program, which provides full coverage for noninterest-bearing transaction deposit accounts at FDIC-insured institutions that agree to participate in the program. The transaction account guarantee applies to all personal and business checking deposit accounts that do not earn interest at participating institutions. This unlimited insurance coverage is temporary and will remain in effect for participating institutions through December 31, 2009.
For more information visit:
Deposits at FDIC-insured institutions are insured up to at least $250,000 per depositor until December 31, 2009. On January 1, 2010, FDIC deposit insurance for all deposit accounts—except for certain retirement accounts—will return to at least $100,000 per depositor. Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, was increased permanently to $250,000 per depositor in 2006.
The FDIC has simplified its rules for the insurance coverage of revocable trust accounts. The new rules provide at least as much coverage as the former rules, and are not subject to the expiration dates referenced above.
Read more about this change at:
http://www.fdic.gov/news/news/financial/2008/fil08099.html.
For more information visit:
http://www.fdic.gov/news/news/financial/2008/fil08102.html
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