The Dodd-Frank Wall Street Reform and Consumer Protection Act signed by President Barack Obama on July 21, 2010, made permanent the current standard maximum deposit insurance amount (SMDIA) of $250,000. The FDIC coverage limit applies per depositor, per insured depository institution, for each account ownership category.

NOTICE OF CHANGE IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS: All funds in a "noninterest-bearing 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 a 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, and money-market deposit accounts.

A pre-arranged or automatic transfer of funds from a deposit account that qualifies as a non-interest bearing transaction account to an interest bearing deposit account will remain covered under FDIC insurance protection up to $250,000.

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