What's New: FDIC Changes and Notice Requirements

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) yesterday approved a final rule to implement section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

The final rule revises the FDIC's deposit insurance regulations to include non-interest bearing transaction accounts as a new temporary deposit insurance account category. All funds held in such accounts are fully insured, without limit, and this coverage is separate from, and in addition to, the coverage provided to depositors for other accounts at an insured depository institution. This separate coverage will become effective on December 31, 2010, and will end on December 31, 2012.

Non-interest bearing accounts include only traditional, non-interest bearing demand deposit (or checking) accounts that allow for an unlimited number of transfers and withdrawals at any time, whether held by a business, individual or other type of depositor.

Insured institutions are required to notify customers of these changes by December 31. 2010.

For details, see Coverage of Non-Interest Bearing Transaction Accounts in the Federal Deposit Insurance section of The Gold Book.