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Sonabank is participating in the FDIC's Transaction Guarantee Program. Under that program, through December 31, 2009, 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 is in addition to and separate from the coverage available under the FDIC 's general deposit insurance rules. On October 3, 2008 the FDIC temporarily increased deposit insurance from $100,000.00 per depositor to $250,000.00.This increase is effective until December 31, 2009. On October 14, 2008 any participating depository institution will be able to provide full deposit insurance coverage for non-interest bearing deposit transaction accounts, regardless of dollar amount. These are mainly payment-processing accounts, such as payroll accounts used by businesses. Frequently, these exceed the current maximum limit of $250,000. This new, temporary guarantee which expires at the end of 2009 will help stabilize these accounts. What does FDIC mean? The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance which guarantees the safety of checking and savings deposits in member banks, currently up to $250,000 per depositor per bank. Why is the FDIC important? Any bank that is a member of the FDIC has to meet requirements set forth by the FDIC and other government regulatory agencies. The FDIC and these other agencies regularly examine these banks to make sure that they are performing to a higher standard than non FDIC insured banks. Even with the higher standards, some banks still fail but if your FDIC member bank fails, the FDIC will guarantee that you do not lose any of your deposited funds. Your balance is insured to the limits set by the FDIC for your account. What accounts does the FDIC insure? The FDIC insures all checking, savings, money market and CD's, up to the insurance limit. The FDIC does not insure investment accounts. That is money you invest in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities. What are the FDIC insurance limits? Currently the FDIC insurance limit is $250,000.00 per depositor. If every account you have at your FDIC insured bank totals $250,000.00 or less, YOU ARE COMPLETELY INSURED. Are there exceptions to the limits or account types? The FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. You may qualify for more than $250,000* in coverage at one insured bank if you own deposit accounts in different ownership categories. |
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