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 December 31, 2010, all non-interest-bearing transaction and NOW accounts with an interest rate of .25% or less are fully guaranteed by the FDIC for the entire amount in the account. Money Market Deposit Accounts, Savings Accounts, Certificates of Deposit, NOW Accounts with interest rates greater than .25% and other interest bearing accounts are not covered by the FDIC’s Transaction Account Guarantee 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.
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 December 31, 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 accounts will be insured for up to $250,000 under the FDIC’s general deposit insurance rules.