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 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 includes other accounts, such as traditional checking or demand deposit accounts that my earn interest, NOW accounts and money-market deposit accounts.
NOTICE: By federal law, as of 1/1/2013, funds in a noninterest-bearing transaction account (including an IOLTA/IOLA) will no longer receive unlimited deposit insurance coverage, but will be FDIC-insured to the legal maximum of $250,000 for each ownership category. For more information, click here.
FDIC Insurance Coverage Increased to $250,000
Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor. Use the FDIC's Electronic Deposit Insurance Estimator to determine your level of coverage:
Electronic Deposit Insurance Estimator