COVERAGE FOR TRANSACTION 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.
 

NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS
 

By operation of law, beginning January 1, 2013, funds dieposited in a noninterest-bearing transaction account (including interest on Lawyers Trust Accounts) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC).  Beginning January 1, 2013, all of a depositor's accounts at First National Bank, including all noninterest bearing transaction accounts, will be insured by FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.
 

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