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FDIC Insurance Information
State Bank of Southern Utah is a member of the FDIC, which means that your eligible deposits are insured against loss in the event of a bank failure. Important changes have been implemented since the financial meltdown of late 2008.
The FDIC permanently increased basic deposit insurance coverage to $250K per depositor, per institution, per ownership category effective July 21, 2010. You should think of this as a minimum insured amount. Depositors at SBSU may multiply FDIC coverage well above the minimum by using ownership categories and non-interest-bearing checking accounts to their advantage.
For example, State Bank is participating in the FDIC’s TAG program (Transaction Account Guarantee - a subset of the Temporary Liquidity Guarantee Program). Non-interest-bearing checking accounts* are 100% guaranteed regardless of the amount by the FDIC through 12/31/2012. This coverage is above and beyond the FDIC’s general deposit insurance rules. Please contact us if you have any questions about how FDIC coverage works.
Even after the TAG Program expires after 12/31/2012, coverage may still be multiplied by using one or more of the ownership categories below. Each category is insured separately.
- Single ($250K): You are the only signer on the account or the account is for a sole proprietor business.
- Joint ($250K per Signer): You and other signers have equal rights of withdrawal and each person has signed the signature card.
- Informal Trust ($250K per grantor/beneficiary): Living Trusts, Pay on Death (POD), In Trust For (ITF) or other revocable trust. Example: (two grantors) x (three beneficiaries) x ($250K each) = $1.5 million of FDIC insurance.
- Formal Trust: ($250K per grantor/beneficiary): Account is governed by a trust document that cannot be revoked or changed.
- Retirement ($250K): IRA accounts at the bank fall under this category and are insured up to $250K.
- Organization ($250K): Business entities fall under this category.
- Non-Interest Bearing Transaction account (Unlimited): Funds in all non-interest bearing transaction accounts are 100% covered through 12/21/2010 regardless of amount. Checking accounts fall under this category if the annual rate of interest is 0.25% or below. Money Market, CD and Savings accounts are specifically excluded.
- IOLTA and UARHOF accounts ($250K): Client owned funds maintained by lawyers and realtors in trust accounts. TAG program provisions for these accounts expire 12/31/2010.
- CDARS (up to multiple millions): Talk to our New Accounts representatives about placing your CDs into the CDARS network.
*Maximum interest rates for a transaction account to be covered under TAG rules are as follows:
Please see a new account representative to make the most of your FDIC Insurance.
Electronic Deposit Insurance Estimator
FDIC Insurance up to multiple millions with CDARS
