FDIC’s Transaction Account Guarantee Program
First State Bank of Alexandria is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through June 30th, 2010, all non-interest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. 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.
Note: Interest-bearing-transaction accounts (NOW Accounts) with a rate of .50% and less are also fully guaranteed.
On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.
FDIC Insurance and Your Sweep Account. Important Sweep Account Information
If you have a sweep arrangement in connection with a noninterest-bearing checking account you have with us, here is some important information: We participate in the transaction account guarantee program offered by the Federal Deposit Insurance Corporation (FDIC). This means that funds held in your non-interest bearing checking account are insured in full by the FDIC through June 30th, 2010. However, under your sweep arrangement, funds are transferred to an interest bearing account that does not qualify for full deposit insurance coverage under the FDIC Transaction Account Guarantee Program. Once the swept funds leave the non-interest bearing account those funds are no longer covered in full. These funds now belong to the interest bearing account and are covered according to your account product. Funds held in interest-bearing savings accounts will continue to be insured through June 30th, 2010, for up to $250,000 under the FDIC’s general deposit insurance rules.