The Emergency Economic Stabilization Act of 2008 increased the basic FDIC insurance coverage limits on your money in insured financial institutions to $250,000 through December 31, 2009.

The temporary increased coverage not only applies to accounts held by individuals, but also to accounts held by corporations, partnerships, limited liability companies and municipalities. There is no cost to the public for the FDIC insurance coverage. After December 31, 2009, the basic FDIC insurance coverage limit will return to $100,000 except for certain retirement accounts, like IRAs, which will continue to receive FDIC insurance coverage up to $250,000.

Tri City National Bank is also participating in the FDIC’s Transaction Account Guarantee Program.

Under that program, through December 31, 2009, all noninterest-earning transaction accounts, VIP Checking, 55+ Checking and Low Minimum Interest Checking, Non-Profit Super NOW Accounts and IOLTA 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.

If you have questions, please visit www.fdic.gov/deposit/deposits, call toll-free 1-877-ASK-FDIC, or speak with a bank representative.

The basic amount of coverage is $250,000.00 per depositor. However, coverage is based on legal ownership. Therefore, with proper titling of accounts, a depositor could have over $250,000.00 insured.

Different types of legal ownership include sole ownership, joint ownership and testamentary (Payable on Death) accounts.

		Sole ownership accounts are owned by one person and include funds held in a sole proprietorship format.
		Joint accounts are owned by two or more individuals.
		Testamentary (POD) accounts are accounts held either jointly or solely where funds are payable on death to one or more beneficiaries.

Eligible beneficiaries for FDIC insurance coverage on POD accounts include spouse, children, grandchildren, parents, brothers or sisters.

The account must be specific so that upon the death of the owner, the funds are payable directly to the named beneficiaries. This information must be on record with the bank prior to death.

An example of FDIC coverage for a husband and wife is given below:

Your total insured deposit amount can grow if additional POD accounts are opened with qualifying beneficiaries.