FDIC Insurance Explained

You may wonder how FDIC coverage works and how it applies to your Thurston First Bank accounts. View this informational video to learn about the latest FDIC Insurance updates.

This video has been provided by BVS

Maximum Deposit Insurance Amount Permanently Raised to $250,000

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 FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

Notice of Expiration of the Temporary Full FDIC Insurance Coverage for Noninterest-Bearing Transaction Accounts

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250, 000), for each deposit insurance ownership category.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.

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FDIC Insurance Overview

As your financial advisor, we are here to help make sure your deposits are safeguarded with FDIC insurance. Your banker is experienced in how to configure your accounts to maximize your FDIC protection. In addition, your banker is trained on the recent updates to FDIC insurance and can explain how these changes may affect your accounts. Below is an overview of the most recent changes put in place by the FDIC:

1. The standard insurance amount currently is $250,000 per depositor.
2. Unlimited deposit insurance coverage is available through December 31, 2012, for non-interest bearing transaction accounts, regardless of dollar amount.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.
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 accountholder has in the same ownership categories at each FDIC-insured bank. The chart shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.