On August 10, 2010, the FDIC Board of Directors adopted the final rule amending its insurance regulations to conform with provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which permanently increased the Standard Maximum Deposit Insurance Amount from $100,000 to $250,000. This permanent increase in the Standard Maximum Deposit Insurance Amount became effective July 22, 2010.
Notice Of Changes In Temporary FDIC Insurance Coverage For Transaction Accounts
NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.
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 also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.
The Standard insurance amount currently is $250,000.00 per depositor. The $250,000.00 limit is permanent for IRAs and other certain retirement accounts. The $250,000.00 limit is temporary for all other deposit accounts through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000.00 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000.00 per depositor.
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