Definition of Insured Deposit

On September 12, 2013, the FDIC Board of Directors adopted the attached Final Rule to clarify that deposits in foreign branches of U.S. banks are not eligible for deposit insurance, although they may qualify as deposits for the purpose of national depositor preference. The Final Rule will be effective October 15, 2013.

The complete financial institution letter may be found here: http://www.fdic.gov/news/news/financial/2013/fil13040.html

What's New: FDIC Insurance Coverage Increase Extended

Superseding the October 3, 2008 changes to FDIC insurance coverage, the FDIC has extended the temporary increase on deposits held at FDIC-insured institutions through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts (including IRAs) which will remain at $250,000 per depositor.

FDIC extended its temporary Transaction Account Guarantee Program through June 30, 2010. This program provides depositors with unlimited coverage for noninterest-bearing transaction accounts at participating FDIC-insured institutions. The unlimited coverage applies to all personal and business checking deposit accounts that do not earn interest (including Demand Deposit (DDA) accounts), low-interest NOW accounts (NOW accounts that cannot earn more than 0.5% interest), Official Items, and IOLTA accounts.

Click here for information about the temporary extensions on these increases.