The latest updates to FDIC Insurance: How do they impact your accounts?
You may be aware that in 2008, the FDIC increased its deposit insurance limit from $100,000 to $250,000. This increased limit is in place through December 31, 2013.
However, you may not know that about the same time, the FDIC also gave banks the option to participate in the Transaction Account Guarantee Program, whereby Banks that opted to participate have been able to offer - through June 30th, 2010 - unlimited deposit insurance on non-interest bearing accounts, as well as interest-bearing checking accounts with an interest rate of .50% or less.
Recently, the FDIC extended this Transaction Account Guarantee Program through December 31, 2010 - again for banks opting to participate. As a part of this extension the interest rate that participating banks are allowed to pay on fully insured interest-bearing checking accounts has been lowered to .25%.
Not all banks have chosen to participate in the Transaction Account Guarantee Program- primarily due to the extra FDIC insurance costs. Check with your bank to find out if they are participating in the Transaction Account Guarantee Program and its extension, or to learn more visit www.fddic.gov