Important Disclosures Regarding New FDIC Insurance Rules

(NEW - December 31, 2010) NOTICE OF CHANGES IN TEMPORARY FDIC COVERAGE FOR TRANSACTIONS 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.

Attention Sweep Account Customers:

If your funds are being swept from a non-interest bearing transaction account to an interest-bearing deposit account, be aware that the funds that are swept will no longer be eligible for unlimited coverage.  This applies to “target-balance” sweeps and automated, recurring sweeps provided for in a deposit agreement signed by the customer.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.