FDIC changes protection levels for deposit customers.

Effective July 21, 2010, the FDIC insurance coverage limit permanently increased to $250,000.

"Riverview Community Bank is participating in the FDIC's Transaction Account Guarantee Program. Under this program, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account through December 31, 2010. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules."

What does FDIC insurance mean for you?

The $250,000 limit applies per depositor, per insured depository institution for each account ownership category. Meaning, on accounts in my name only, up to $250,000 of my deposits are covered. On accounts in my spouses name only, up to $250,000 of deposit are covered. On accounts held in both of our names, we EACH have $250,000 coverage. That is $1,000,000 coverage right there. It also doesn't include the $250,000 coverage, EACH, for retirement accounts. That's potentially $1,500,000 coverage for a married couple at each FDIC member bank where the individual has insured accounts.

 

Additionally, that's before any "payable upon death" accounts, where children, grandchildren or other immediate family members are listed as beneficiaries.

 

However, if you have noninterest-bearing transaction accounts covered under the Transaction Account Guarantee Program with a transfer or sweep arrangement to an interest bearing transaction account or product, that transfer could decrease your FDIC deposit insurance coverage. 

 

Now that Riverview has opted in to the new Transaction Account Guarantee Program, all of the qualified deposit balances are guaranteed by the FDIC.

 

What is a "qualified" deposit account?

A qualified deposit account is any personal account either non-interest bearing or interest-bearing up to a maximum of 0.50% through June 30, 2010 and up to a maximum of 0.25% starting July 1, 2010.

 

Does this include Business Accounts?

Yes, this includes business accounts held by sole proprietors, not-for-profit corporations, the Interest on Lawyer' Trust Accounts (IOLTA) and Negotiable on Withdrawal (NOW) accounts if interest paid is up to a maximum of 0.50% through June 30, 2010 and up to a maximum of 0.25% starting July 1, 2010.

 

What about accounts that earn over 0.50% interest through June 30, 2010 and over 0.25% starting July 1, 2010, such as Savings and Money Market Accounts?

These accounts fall under the original increase from the FDIC that is explained above. They are guaranteed up to $250,000 under the FDIC.

 

What accounts at Riverview qualify for the Transaction Account Guarantee Program?

Free Checking

Interest Checking

Senior Checking

Non-interest bearing Escrow accounts

Business Checking

Analyzed Business Checking

Interest Checking

NOW Accounts, Public Funds & IOLTA's - as long as the Interest Rate is up to a maximum of 0.50% through June 30, 2010 and up to a maximum of 0.25% starting July 1, 2010

 

When does the Transaction Account Guarantee Program coverage end?

This coverage is available through December 31, 2010

 

For more information on the Transaction Account Guarantee Program or the FDIC, please visit or call:

www.FDIC.gov

http://www.fdic.gov/regulations/resources/TLGP/faq.html (FAQ on TAGP)

Call: 877-ASK-FDIC (877-275-3342)

or TDD: 800-925-4618