Important new FDIC insurance rules in effect from December
31, 2010 through December 31, 2012.
The Dodd Frank Act has extended
some provisions of the FDIC’s Transaction Account Guarantee Program. Under the Dodd Frank Act, all “noninterest-bearing
transaction accounts” and IOLTA accounts are fully guaranteed by the
Federal Deposit Insurance Corporation (FDIC) for the entire amount in the
account from December 31, 2010 through December 31, 2012. Coverage under the Dodd Frank Act is in
addition to and separate from the coverage available under the FDIC’s general
deposit insurance rules.
The term
“noninterest-bearing transaction account” includes all traditional
checking or demand deposit accounts on which the insured depository institution
pays no interest. It does not include
other accounts, such as traditional checking and demand deposit accounts that
may earn interest, NOW accounts or money-market deposit accounts.
For more information about FDIC
insurance coverage of transactions accounts, you may visit the FDIC’s
website at www.fdic.gov or call the First
National Bank of Odon at (812) 636-7324.
