|
NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NON-INTEREST-BEARING TRANSACTION ACCOUNTS
In response to the "great recession", FDIC insurance protection rules changed in 2010 to allow for temporary full coverage for non-interest bearing accounts.
Since interest rates were so low at the time, many businesses decided to give up interest income in order to achieve for coverage on non-interest-bearing accounts.
The provisions that allow for full coverage on non-interest bearing accounts expired
January 1, 2013.
Here are the details:
The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into federal law by President Barack Obama on July 21, 2010.
Passed as a response to the recession, it brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression.
It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation's financial services industry.
Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts at all FDIC-insured depository institutions from December 31, 2010 through December 31, 2012
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterestbearing 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 depositor's 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 http://www.fdic.gov/deposit/deposits/unlimited/expiration.html
|
