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FDIC’s Transaction Account Guarantee Program
Metuchen Savings Bank is participating in the FDIC’s Transaction Account Guarantee (TAG) Program. Under that Program, through December 31, 2010*, all noninterest-bearing accounts are fully guaranteed by the FDIC for the entire amount in the account. Effective July 1, 2010, NOW accounts paying a maximum interest rate of 0.25 percent are considered noninterest-bearing transaction accounts and are guaranteed under the TAG program. 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. *See below for additional information as to FDIC coverage apart from the TAG Program, as explained in the footnote at the bottom of this page.
FDIC Deposit Insurance Facts
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in FDIC-insured institutions. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
There is no need for depositors to apply for FDIC insurance or even to request it; coverage is automatic. FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. FDIC insurance does not cover other financial products that insured banks may offer, such as stocks, bonds, mutual funds shares, life insurance policies, annuities or municipal securities.
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013. We strongly encourage all bank depositors who have questions about their insurance coverage to go to visit the FDIC’s Web site at www.fdic.gov and use their Electronic Deposit Insurance Estimator (EDIE) or call toll-free number at 1-877-ASK-FDIC.
To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an account holder has in the same ownership categories at each FDIC-insured institution. The chart below assumes that all FDIC requirements are met (for details on the requirements, go to www.fdic.gov/deposit/deposits).
FDIC Deposit Insurance Coverage Limits (Through December 31, 2013)
| Single Accounts (owned by one person) | $250,000 per owner |
| Joint Accounts (two or more persons) | $250,000 per co-owner |
| IRAs and Other Certain Retirement Accounts | $250,000 per owner |
| Revocable Trust Accounts | $250,000 per owner per beneficiary up to 5 beneficiaries (more coverage is available with 6 or more beneficiaries subject to specific limitations and requirements |
| Corporation Partnership and Unincorporated Association Accounts | $250,000 per corporation partnership or unincorporated association |
| Irrevocable Trust Accounts | $250,000 For the non-contingent, ascertainable interest of each beneficiary |
| Employee Benefit Plan Accounts | $250,000 for the non-contingent, ascertainable interest of each plan participant |
| Government Accounts | $250,000 per official custodian |
You can calculate your insurance coverage using the FDIC’s Electronic Deposit Insurance Estimator at www.myfdicinsurance.gov. For questions about FDIC coverage, call toll-free 1-877-ASK-FDIC or ask a representative at your bank.
*Unlimited deposit insurance coverage for noninterest-bearing transaction accounts (as defined in 12 C.F.R Part 370) at institutions participating in the FDIC’s Transaction Account Guarantee Program is available through December 31, 2010. The extension of the temporary standard insurance amount of $250,000 through 2013 does not apply to the Transaction Account Guarantee Program.
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