Changes In FDIC Deposit Insurance Coverage

As scheduled, the unlimited insurance coverage for noninterest-bearing transaction accounts provided under the Dodd-Frank Act expired on December 31, 2012. Deposits held in noninterest-bearing transaction account are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total are insured up to at least $250,000.

FDIC insurance for other deposit accounts, such as interest-bearing savings accounts were previously separate from and in addition to the unlimited coverage for noninterest-bearing accounts. Depositors must be aware that balances for both may now be combined, depending on the applicable category. The standard coverage limit for single accounts (except for some types of retirement accounts) is $250,000.

We have talked with a few members this week who are now using several local banks in order to keep balances below the new $250,000 FDIC insurance limits.

A list of banks which have failed and required FDIC takeover can be found at http://bit.ly/bankfails.