Unlimited Deposit Insurance Has Now Expired
By: Morris Law Group - June 12, 2013
The Federal Deposit Insurance Corporation's ("FDIC") Transaction Account Guarantee ("TAG") program was introduced in October of 2008 in an effort to stabilize the U.S. banking system. The program expanded the general FDIC coverage by offering unlimited insurance coverage for all noninterest-bearing transaction accounts.
The coverage offered by TAG expired on December 31, 2012, leaving many previously-insured accounts now underinsured. Rather than the previous unlimited insurance afforded to noninterest-bearing transaction accounts, the funds in such accounts will be aggregated with any of a depositor's other accounts in the same ownership category, and the total is now only insured up to $250,000, per depositor, at each separately insured bank.
It is strongly advised that depositors consider adjusting the titling of their accounts to ensure FDIC coverage.
The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. Account categories generally include, single accounts ($250,000 per owner), joint accounts ($250,000 per co-owner), certain retirement accounts ($250,000 per owner), revocable trust accounts ($250,000 per owner per beneficiary, up to 5 beneficiaries), corporation, partnership and unincorporated association accounts ($250,000 per entity), irrevocable trust accounts ($250,000 for the non-contingent, ascertainable interest of each beneficiary), employee benefit plan accounts ($250,000 for the non-contingent, ascertainable interest of each plan participant) and government accounts ($250,000 per official custodian). To calculate your deposit insurance coverage, you can use the FDIC's electronic deposit insurance estimator at www.fdic.gov/edie.
By staying updated on the insurance currently afforded to your deposits, you can keep your money adequately insured. Please call or email us if you have any questions regarding the contents of this notice.