FDIC INSURANCE COVERAGE FOR
TRANSACTION ACCOUNTS
In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, from December 31, 2010, through December 31, 2012, all funds in noninterest-bearing transaction accounts are insured in full by the Federal Deposit Insurance Corporation. This unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDICs 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 does not include any transaction account that may earn interest, such as a negotiable order of withdrawal (NOW) account, money-market deposit account, or Interest on Lawyers Trust Account (IOLTA), even if checks may be drawn on the account.
The temporary full insurance coverage of noninterest-bearing transaction accounts expires on December 31, 2012. After December 31, 2012, funds in Noninterest-bearing transaction accounts will be insured under the FDICs general deposit insurance rules, subject to the Standard Maximum Deposit Insurance Amount of $250,000. For more information about FDIC insurance coverage of transaction accounts,
visit http://www.fdic.gov.
