There have been many changes in the financial system since passage
of the recent legislation designed to help shore up troubled banks
and other financial institutions. Among those changes has been an expansion
of coverage of insured deposits. Following is a primer on deposit insurance,
including an update on the recent changes.
A Quick Backgrounder
Our bank is insured by the Federal Deposit Insurance Corporation (FDIC),
an independent agency of the U.S. government. The FDIC insures all
deposits, including checking, NOW, savings and money market accounts,
as well as CDs, for up to $250,000 per depositor*, and up to $250,000
per depositor for certain retirement accounts, including traditional
IRAs, Roth IRAs, SEP and SIMPLE IRAs, among other retirement accounts.
(*As part of the financial rescue legislation passed October
3, this coverage increased from $100,000 per depositor to $250,000
per depositor through December 31, 2009.)
You may even qualify for additional deposit insurance coverage if
you own deposit accounts in different ownership categories. The FDIC
provides separate insurance coverage for deposits held in single accounts
and the retirement accounts mentioned above, as well as joint accounts
and revocable trust accounts, including living trusts and payable-on-death
(POD) accounts.
Since the FDIC’s founding in 1933, no depositor has ever lost a penny
of insured deposits. FDIC-insured deposits have proven to be completely
safe.
What the FDIC does not insure are investments in
stocks, bonds, mutual funds, life insurance policies, annuities, or
municipal securities, even if these products were purchased from an
FDIC-insured bank.
Basic FDIC Deposit Insurance Coverage Limits**
Single Accounts (owned by one person)
$250,000 per owner
Joint Accounts (two or more persons)
$250,000 per co-owner
IRAs and certain other retirement accounts
$250,000 per owner
Trust Accounts
$250,000 per owner per beneficiary subject to specific limitations
and requirements
Corporation, Partnership and Unincorporated Association
Accounts
$250,000 per corporation, partnership or unincorporated association
Employee Benefit Plan Accounts
$250,000 for the non-contingent, ascertainable interest of
each participant
Government Accounts
$250,000 per official custodian
Non-interest Bearing Transaction Accounts
Unlimited coverage. CBC National Bank – which includes Lowcountry
National Bank, First National Bank of Nassau County and The Georgia
Bank – are participating in this program. ***
** On January 1, 2010, the standard coverage limit will return to $100,000
for all deposit categories except IRAs and certain retirement accounts, which
will continue to be insured up to $250,000 per owner.
*** Unlimited deposit insurance coverage is available through December 31, 2009,
for non-interest bearing transaction accounts at institutions participating in
FDIC’s Temporary Liquidity Guarantee Program.
If you have questions about FDIC coverage limits and requirements, visit www.myFDICinsurance.gov,
call toll-free 1-877-ASK-FDIC or ask a customer service representative
at your branch.
