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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 does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs").
For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.
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.
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. FDIC coverage may be multiplied well above the minimum.
For example, through the FDIC’s temporary TAG program (Transaction Account Guarantee) and permanent provisions in the Dodd-Frank Financial Reform Act, non-interest-bearing transaction accounts are 100% covered by the FDIC regardless of the balance through 12/31/2012 (see further explanation below). This coverage is above and beyond the FDIC’s general insurance.
Another nifty method to multiply FDIC insurance is to use ownership categories and account types to your advantage. Each category/type listed below 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 Checking accounts (Unlimited): Funds in all non-interest bearing transaction accounts are 100% covered through 12/31/2010 regardless of amount. “Non-interest” is further qualified as . . .
- Checking accounts that pay no more than 0.25% interest through 12/31/2010, reduced to 0.00% through 12/31/12, and
- In 2011 and 2012 the account cannot be a NOW account.
- Other accounts specifically excluded from coverage under this provision include Money Market, CD, Savings and IOLTA accounts.
- This unlimited balance coverage under TAG expires 12/31/10 but continue under provisions of the Dodd-Frank Act through 2012.
- 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.
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
