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