Effective January 1, 2013, the Federal Deposit Insurance Corporation (“FDIC”) is eliminating the unlimited deposit insurance previously in effect for all “noninterest-bearing transaction accounts” held in institutions such as Leader Bank. The term “noninterest-bearing transaction account” includes traditional checking account, demand deposit accounts that pay no interest, and Interest on Lawyers Trust Accounts.
Effective January 1, 2013, the FDIC’s maximum insurance coverage shall revert to $250,000.00 per depositor per institution, although you may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different categories (such as joint accounts, individual accounts, etc.). For more information about the scope of FDIC insurance coverage for your accounts, please visit www.fdic.gov.
FDIC LIMITATIONS ON COVERAGE OF ACCOUNTS
On August 10, 2010, the FDIC Board of Directors amended its
insurance and advertising regulations to conform with the provisions of the Dodd-Frank
Wall Street Report and Consumer Protection Act, which permanently increased the
standard maximum deposit insurance amount from $100,000 to $250,000. This permanent
increase became effective on July 22, 2010. The FDIC provides separate insurance
coverage for deposit accounts held in different categories of ownership. You may
qualify for more than $250,000 in coverage at one insured bank if you own deposit
accounts in different categories (i.e. individual accounts, joint accounts, business
accounts, etc.). However, the contents of safe deposit boxes are not covered by
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. Interest on Lawyers Trust Accounts (“IOLTAs”) are
included within the definition of “noninterest-bearing transaction account.” 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.
For more information about temporary FDIC insurance coverage
of transaction accounts, visit www.fdic.gov.
If you have any questions regarding your FDIC insurance coverage,
please contact your local Leader Bank branch or call us toll free at 1-877-691-7900.