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Lower Account Risk with Higher FDIC Limits?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in FDIC-insured institutions. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
There is no need for depositors to apply for FDIC insurance or even to request it; coverage is automatic. FDIC coverage of $250,000 per depositor covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts, certificates of deposit and individual retirement accounts (IRAs). FDIC insurance does not cover other financial products 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 institution. The chart below assumes that all FDIC requirements are met.
|FDIC Deposit Insurance Coverage Limits|
(owned by one person)
|$250,000 per owner|
(two or more persons)
|$250,000 per co-owner|
|Certain Retirement Accounts
|$250,000 per owner|
|Revocable Trust Accounts||$250,000 per owner per beneficiary up to 5 beneficiaries (more coverage is available with 6 or more beneficiaries subject to specific limitations and requirements)|
|Corporation, Partnership and Unincorporated Association Accounts||$250,000 per corporation, partnership or unincorporated association|
|Irrevocable Trust Accounts||$250,000 for the non-contingent, ascertainable interest of each beneficiary|
|Employee Benefit Plan Accounts||$250,000 for the non-contingent, ascertainable interest of each plan participant|
|Government Accounts||$250,000 per official custodian|
At Integrity Bank, we value our customer relationships and realize that FDIC insurance coverage is important to you. If you have any questions, please contact us at 713-335-8700.
FDIC TAG Program
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 depositorís 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.
For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit www.fdic.gov/deposit/deposits.