The FDIC's Account Transaction Guarantee Program
Canyon National Bank is a participant in the FDIC TAG Program. The FDIC’s temporary Transaction Account Guarantee (TAG) Program provides depositors with unlimited coverage for noninterest-bearing transaction accounts at participating FDIC-insured institutions. Noninterest-bearing checking accounts include Demand Deposit Accounts (DDAs) and any transaction account that has unlimited withdrawals and that cannot earn interest. Also included are IOLTA accounts (regardless of the interest rate) and NOW accounts that do not earn more than 0.25% interest. The program is temporary and will remain in effect through December 31, 2010, unless extended by the FDIC.
Beginning December 31, 2010 through December 31, 2012, deposits held in noninterest-bearing transaction accounts will be fully insured, regardless of the amount in the account, at all FDIC-insured institutions.
The standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category.
What is FDIC Insurance Coverage?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.
What is covered by FDIC Insurance?
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs).
What do you need to do to obtain FDIC Coverage?
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.
What are FDIC Insurance Limits?
To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts.
Basic FDIC Deposit Insurance Coverage Limits*
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Single Accounts (owned by one person)
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$250,000 per owner**
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Joint Accounts (two or more persons)
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$250,000 per co-owner**
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IRAs and certain other retirement accounts
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$250,000 per owner
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Trust Accounts
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$250,000 per owner per beneficiary
subject to specific limitations and requirements **
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| Corporation/Partnership/Unincorporated Association Accounts |
$250,000 per entity***
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* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. These deposit insurance coverage limits are excluding non-interest bearing accounts which have unlimited limit coverage until December 31, 2010. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2010.
*** Corporation, partnerships, and unincorporated assoication accounts are insured seperately from the personal accounts of the entity's stockholders, partners, or members. The number of partners, members, or account signatories that a corporation, partnership, or unincorporated association does not affect coverage. Accounts in the names of sole proprietorships (for example, "DBA accounts") are not insured in this category. Rather, sole proprietor accounts are added to the owner's other single accounts, if any, at the same insured bank. Unincorporated associations typically insured under this category include churches and other religious organizations, community and civic organizations, and social clubs.
Questions
If you have questions about FDIC coverage limits and requirements, visit your Canyon National Bank Customer Service Representative or visit www.myFDICinsurance.gov, call toll-free 1-877-ASK-FDIC.
See your Canyon National Bank Customer Service Representative for a customized analysis of your FDIC Insurance Coverage.