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Effective July 21, 2010, the FDIC has permanently increased the standard federal deposit insurance coverage to $250,000. This coverage limit applies per depositor, per insured depository institution for each account ownership category.
In addition, State Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. The definition of noninterest-bearing transaction accounts includes Interest on Lawyers Accounts (IOLA), Negotiable Order of Withdrawal Accounts (NOW) with interest rates no higher than 0.25%, and non-interest checking accounts also known as Demand Deposit Accounts (DDA). Funds automatically transferred from a State Bank checking account into a State Bank savings account are not covered under this program, but guaranteed by the FDIC’s general deposit insurance rules.
Regarding the treatment of funds swept to a third-party money market mutual fund, the funds remaining in the State Bank checking account are covered under this program, while the funds swept to the money market mutual fund are not.
Coverage under the FDIC’s Transaction Account Guarantee Program is in
addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.
To learn more about FDIC insurance, visit the agency’s web site at www.fdic.gov. |