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FDIC Deposit Insurance Coverage
Rockford Bank & Trust is
participating in the FDIC's Transaction Account Guarantee
Program. Under that program, through December 31, 2010, all
non-interest bearing transaction accounts are fully guaranteed
by the FDIC for the entire amount in the account. Coverage
under the Transaction Account Guarantee Program is in addition
to and separate from the coverage available under the FDIC's
general deposit insurance rules.
The Federal Deposit Insurance Corporation
(FDIC) is an independent agency of the United States
government that protects against the loss of insured deposits
if an FDIC-insured bank or savings association fails. FDIC
deposit insurance is backed by the full faith and credit of
the United States government. Since the FDIC was established,
no depositor has ever lost a single penny of FDIC-insured
funds.
FDIC
insurance covers funds in deposit accounts, including checking
and savings accounts, money market deposit accounts and
certificates of deposit (CDs). FDIC insurance does not,
however, cover other financial products and services that
insured banks may offer, such as stocks, bonds, mutual fund
shares, life insurance policies, annuities or municipal
securities.
There is no need for depositors to apply
for FDIC insurance or even to request it. Coverage is
automatic.
To ensure funds are fully protected,
depositors should understand their coverage limits. The FDIC
provides separate coverage for deposits held in different
account ownership categories. The coverage limits shown in the
chart below refer to the total of all deposits that an
accountholder has in the same ownership categories at each
FDIC-insured bank. The chart shows only the most common
ownership categories that apply to individual and family
deposits, and assumes that all FDIC requirements are met.
Basic FDIC Deposit Insurance Coverage Limits*
| Single Accounts (owned by one person) |
$250,000 per owner |
| Joint Accounts (two or more persons) |
$250,000 per co-owner |
| IRAs and certain other retirement accounts
|
$250,000 per owner |
| Trust Accounts |
$250,000 per owner per beneficiary subject to specific limitations and
requirements |
Corporation, Partnership and
Unincorporated Association Accounts |
$250,000 per corporation, partnership or Accounts unincorporated association |
| Employee Benefit Plan Accounts |
$250,000 for the non-contingent, ascertainable interest of each participant |
| Government Accounts |
$250,000 per official custodian |
| Non-interest Bearing Transaction Accounts1 |
Unlimited coverage** |
If you have questions about FDIC coverage limits and requirements:
*On January 1, 2014, the standard coverage limit will return to
$100,000 for all deposit categories except IRAs and Certain Retirement
Accounts, which will continue to be insured up to $250,000 per owner.
**Unlimited deposit insurance coverage is available through December 31, 2010,
for non-interest bearing transaction accounts at institutions participating in
FDIC’s Temporary Liquidity Guarantee Program.
1 A "non-interest bearing transaction account" is defined as a
transaction account with respect to which interest is neither accrued nor paid
and on which the insured depository institution does not reserve the right to
require advance notice of an intended withdrawal. This definition encompasses
traditional demand deposit checking accounts that allow for an unlimited number
of deposits and withdrawals at any time. This definition does not encompass
interest bearing money market deposit accounts (MMDAs).
However, for purposes of the transaction account guarantee program, the FDIC is
including in the definition of a non-interest bearing transaction account:
•Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and
functionally equivalent accounts; and
•Negotiable order of withdrawal accounts (NOW accounts) with interest rates no
higher than 0.25 percent for which the insured depository institution at which
the account is held has committed to maintain the interest rate at or below
0.25 percent.
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