All funds in a “noninterest-bear transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit http://www.fdic.gov, 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.

To qualify as an eligible POD beneficiary, the beneficiary must be a living person, a charity or a non-profit organization. If a charity or non-profit organization is named as beneficiary, it must qualify as such under Internal Revenue Service (IRS) regulations.

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.