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IMPORTANT INFORMATION REGARDING FDIC
DEPOSIT INSURANCE |
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Community Bank Bank IS
participating in the FDIC’s Transaction Account Guarantee Program.
Under that program, through June
30, 2010, all non-interest-bearing transaction accounts are fully
guaranteed by the FDIC for the entire amount in the account.
Coverage under the Transaction Account Guarantee Program is in
addition to and separate from the coverage available under the
FDIC’s general deposit insurance rules.
What deposit accounts are included in
the definition of a "noninterest-bearing transaction account"?
o
Transaction account with respect to which interest is neither
accrued nor paid and on which the insured depository institution
does not reserve the right to require advance notice of an intended
withdrawal
o
Traditional demand deposit checking accounts that allow for an
unlimited number of deposits and withdrawals at any time
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Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs)
and functionally equivalent accounts
o
Negotiable order of withdrawal accounts (NOW accounts) with interest
rates no higher than 0.50 percent
Which accounts would not be considered
a “noninterest-bearing transaction account”?
o Money
market deposit accounts
o Savings
accounts
o Time
deposit accounts (CD’s)
o Safe
Deposit Box contents are NOT covered by FDIC insurance
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Temporary Changes to
FDIC Deposit Insurance Coverage
The Federal Deposit Insurance Corporation
(FDIC) is an independent agency of the United States government that
protects funds depositors place in banks and savings associations.
FDIC insurance is backed by the full faith and credit of the United
States government. Since the FDIC was established in 1933, no
depositor has ever lost a single penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts,
including checking and savings accounts, money market deposit
accounts and certificates of deposit. FDIC insurance does not cover
other financial products and services that banks may offer, such as
stocks, bonds, mutual fund shares, life insurance policies,
annuities or securities.
The standard insurance amount currently is
$250,000 per depositor. The $250,000 limit is permanent for certain
retirement accounts (includes IRAs) and is temporary for all other
deposit accounts through December 31, 2013. On January 1, 2014, the
standard insurance amount will return to $100,000 per depositor for
all deposit accounts except certain retirement accounts, which will
remain at $250,000 per depositor.
The FDIC provides separate coverage for
deposits held in different account ownership categories. Depositors
may qualify for more coverage if they have funds in different
ownership categories and all FDIC requirements are met. (For details
on the requirements, go to
www.fdic.gov/deposit/deposits.)
The following chart shows standard insurance
amounts for FDIC account ownership categories. All deposits that an
accountholder has in the same ownership category are added together
and insured up to the standard insurance amount.
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FDIC Deposit Insurance Coverage Limits through December 31,
2013
by account ownership category
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Single Accounts
(owned by one person) |
$ 250,000 per owner |
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Joint Accounts
(owned by two or more persons) |
$ 250,000 per co-owner |
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Certain Retirement Accounts
(includes IRAs) |
$ 250,000 per owner |
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Revocable Trust Accounts |
$ 250,000 per owner per beneficiary up to 5
beneficiaries (more coverage available with 6 or more
beneficiaries subject to specific limitations and requirements)
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Corporation, Partnership and
Unincorporated Association Accounts |
$ 250,000 per corporation, partnership or
unincorporated association |
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Irrevocable Trust Accounts |
$ 250,000 for the non-contingent,
ascertainable interest of each beneficiary |
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Employee Benefit Plan Accounts |
$ 250,000 for the non-contingent,
ascertainable interest of each plan participant |
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Government Accounts |
$ 250,000 per official custodian |
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To
calculate your deposit insurance coverage
Use the FDIC’s Electronic Deposit Insurance
Estimator (EDIE) at:
www.fdic.gov/edie. |
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For
questions about FDIC coverage limits and requirements
Visit
www.FDIC.gov/deposit/deposits,
call toll-free 1-877-ASK-FDIC, or ask a representative at your
bank. |
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1 On January 1, 2014, the
standard coverage limit will return to $100,000 for all deposit
categories except Certain Retirement Accounts (includes IRAs),
which will continue to be insured up to $250,000 per owner |
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| © Community Bank • 101 Community Blvd. • Longview, TX 75602 • (903) 236-4422 • Group M7 design |
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