Notice of Change in FDIC Insurance

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

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.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

General Deposit Insurance Rule

The basic insurance amount is $250,000 per depositor, per insured bank. Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured.

Frequently Asked Questions about FDIC insurance coverage

Q: How do I find out how the FDIC insurance rules apply to my specific account?

A: You can estimate your insurance coverage with the Electronic Deposit Insurance Estimator on the fdic.gov website. The Electronic Deposit Insurance Estimator (EDIE) lets consumers and bankers know, on a per-bank basis, how the insurance rules and limits apply to a depositor's specific group of deposit accounts – what's insured and what portion (if any) exceeds coverage limits at that bank. EDIE also allows the user to print the report for their records.

Q: How can I qualify for more than $250,000 in FDIC insurance coverage?

A: The FDIC provides separate insurance coverage for a depositor's funds at the same insured bank if the deposits are held in different ownership categories. To qualify for this expanded coverage, the requirements for insurance coverage in each ownership category must be met.

The example below illustrates how a family of four – a husband and wife with two children – could qualify for up to $3 million in FDIC coverage at one insured bank. This example assumes that the funds are in qualified deposit products at an insured bank and these are the only accounts that the family has at the bank.

Example: Insurance coverage for a family of four with deposit accounts in multiple ownership categories
Account Title	Account Ownership Category	Owner(s)	Beneficiary(ies)	Maximum Insurable Amount ($)
Husband	Single Account	Husband		250,000
Wife	Single Account	Wife		250,000
Husband IRA	Certain Retirement Account	Husband		250,000
Wife IRA	Certain Retirement Account	Wife		250,000
Husband & Wife	Joint Account	Husband & Wife		500,000
Husband POD	Revocable Trust Account	Husband	Wife	250,000
Wife POD	Revocable Trust Account	Wife	Husband	250,000
Husband & Wife Living Trust	Revocable Trust Account	Husband & Wife	Child 1 Child 2	1,000,000
Total				3,000,000
Amount Insured				3,000,000
Amount Uninsured				0

Explanation:
Single Account Ownership Category: The FDIC combines all single accounts owned by the same person at the same bank and insures the total up to $250,000. The Husband's single account deposits do not exceed $250,000 so his funds are fully insured. The same facts apply to the Wife's single account deposits. Both accounts are fully insured.

Certain Retirement Account Ownership Category: The FDIC adds together all certain retirement accounts owned by the same person at the same bank and insures the total up to $250,000. The Husband and Wife each have an IRA deposit at the bank with a balance of $250,000. Because each account is within the insurance limit, the funds are fully insured.

Joint Account Ownership Category: Husband and Wife have one joint account at the bank. The FDIC combines each co-owner's shares of all joint accounts at the bank and insures each co-owner's total up to $250,000. Husband's ownership share in all joint accounts at the bank equals ½ of the joint account or $250,000, so his share is fully insured. Wife's ownership share in all joint accounts at the bank equals ½ of the joint account or $250,000, so her share is fully insured.

Revocable Trust Account Ownership Category: To determine insurance coverage of revocable trust accounts, the FDIC first determines the amount of the trust's deposits belonging to each owner. In this example:

• Husband's share = $750,000 (100% of the Husband's POD account naming Wife as beneficiary and 50% of the Husband and Wife Living Trust account identifying Child 1 and Child 2 as beneficiaries)
• Wife's share = $750,000 (100% of the Wife's POD account naming Husband as beneficiary and 50% of the Husband and Wife Living Trust account identifying Child 1 and Child 2 as beneficiaries)

Second, the FDIC determines the number of beneficiaries for each owner. In this example, each owner has three different beneficiaries (Spouse, Child 1 and Child 2). When a revocable trust owner names five or fewer different beneficiaries, the owner is insured up to $250,000 for each different beneficiary. Husband's share of the revocable trust deposits is insured up to $750,000 ($250,000 times three beneficiaries = $750,000). Wife's share of the revocable trust deposits is insured up to $750,000 ($250,000 times three beneficiaries = $750,000).