Based on the following Press Release from the FDIC, Basic FDIC Insurance Coverage has been Permanently Increased to $250,000 Per Depositor.
FOR IMMEDIATE RELEASE July 21, 2010
Media Contact: Andrew Gray
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
The temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013.
"With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013. We strongly encourage all bank depositors who have questions about their insurance coverage to go to our Web site at www.fdic.gov and use our Electronic Deposit Insurance Estimator (EDIE) or call our toll-free number at 1-877-ASK-FDIC. Insured deposits provide the comfort and peace of mind to depositors that their money is 100 percent safe – provided they keep their deposit balances within the insurance limits," said FDIC Chairman Sheila C. Bair.
To help consumers, bankers and others understand how the new law affects deposit insurance coverage and to help consumers verify whether their deposit accounts are fully protected, the FDIC provides the following resources: Information on deposit insurance on the FDIC Web site: Updated brochures on deposit insurance coverage (including the basic guide, Deposit Insurance Summary, and the more comprehensive guide, Your Insured Deposits) and a new version of the "Electronic Deposit Insurance Estimator" (EDIE), an interactive service that allows consumers to quickly and easily check whether their accounts are fully protected, are now available on the FDIC's Web site (www.fdic.gov). A toll-free consumer assistance line: Help and information about deposit insurance and other matters of interest to bank customers are available at 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday from 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insured deposits at the nation's 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring the addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-161-2010
The Honesdale National Bank - A Safe Place for your Money
The Honesdale National Bank is participating in the FDIC's Transaction Account Guarantee Program. Under the program, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program (TAGP) is in addition to and separate from the $250,000 coverage available under the FDIC's general deposit insurance rules.
On April 13, 2010, the FDIC adopted the attached interim final rule extending the Transaction Account Guarantee (TAG) component of the Temporary Liquidity Guarantee Program for six months, through December 31, 2010, with the possibility of extending the program an additional 12 months without further rulemaking. The maximum interest rate limit for NOW accounts guaranteed under the TAG program will be 0.25%, effective July 1, 2010.
How is HNB able to offer unlimited FDIC Insurance?
By participating in the FDIC's voluntary program at its own expense, Honesdale National is able to offer this benefit to our customers.
How does HNB's participation in this program benefit you?
This added coverage will be particularly valuable to small businesses to assure payroll and other operating accounts are fully insured. We see this program as a way to provide extra deposit insurance protection for our customers and ensure your money is safe.
For most of us, our deposits fall within the FDIC's deposit insurance coverage limits. However, if you exceed the limit, simply contact your local HNB Office and ask us how to maximize your FDIC deposit coverage.
Can I receive unlimited FDIC Insurance at HNB?
Yes. All non-interest bearing transaction deposit accounts are 100% FDIC-insured for the entire amount in the account through December 31, 2010. All other interest bearing accounts are insured under the general FDIC coverage of $250,000 per depositor.
Is this part of the Troubled Asset Relief (bailout) program?
No. This is not part of the Troubled Assets Relief Program (TARP) program. The Transaction Account Guarantee (TAG) Program is a voluntary service provided by the FDIC. The Honesdale National Bank chose to participate at its own expense to benefit our customers. No taxpayer or "bailout" funds are being used to pay for the additional coverage; this program is paid for by participating banks.
Is the unlimited FDIC Insurance coverage permanent?
No. The Transaction Account Guarantee Program and new FDIC general deposit insurance coverage limits are temporary. The program is currently scheduled to remain in effect until December 31, 2010.
How does FDIC insurance work at The Honesdale National Bank?
Deposits at The Honesdale National Bank are federally insured by the FDIC up to the maximum legal limits. On October 3, 2008, FDIC general deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013. The Honesdale National Bank checking, savings, certificates of deposit (CDs), money market accounts, and other interest-bearing deposit accounts, when combined, are now FDIC-insured up to $250,000 per depositor. Joint accounts may be insured up to $250,000 per owner in addition to the $250,000 of insurance available on those same owner's individual accounts.
The FDIC provides separate coverage up to $250,000 for retirement accounts, such as Individual Retirement Accounts (IRAs) and Keoughs.
The Transaction Account Guarantee Program is in addition to and separate from the $250,000 coverage available under the FDIC's general deposit insurance rules.
To learn how FDIC insurance works, visit the FDIC Website - http://fdic.gov/deposit/index.html
- or call 877-ASKFDIC (877-275-3342).
