New FDIC Deposit Insurance Coverage 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.
There is no need for depositors to apply for FDIC insurance or even to request it; coverage is automatic. FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit.
The FDIC guarantees deposit accounts (checking, savings, money market and CDs) up to the maximum allowed by law. The FDIC announced on May 20, 2009, that deposits at FDIC-insured institutions are now temporarily insured up to at least $250,000 per depositor through December 31, 2013. The FDIC separately guarantees bank individual retirement accounts (IRAs) up to $250,000 per owner.
On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor.
FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as sweep accounts, stocks, bonds, mutual fund shares, life insurance policies, annuities and municipal securities.
HarVest Bank of Maryland participates in the FDIC's Transaction Account Guarantee Program. Under this program, through December 31, 2010, all non-interest-bearing transaction accounts (checking accounts) are fully guaranteed by the FDIC for the entire amount in the account. Interest checking accounts (also known as Negotiable Order of Withdrawal accounts or NOW accounts) that earn an interest rate of 0.25% are also fully guaranteed by the FDIC. Coverage under this program is in addition to and separate from the coverage available under the FDIC's basic deposit insurance rules.
If you have questions about FDIC coverage limits and requirements, ask your bank representative, visit www.myFDICinsurance.gov or call toll-free 1-877-ASK-FDIC.
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