Notice of Expiration of the Temporary Full FDIC Insurance Coverage for Noninterest-Bearing Transactions Accounts
By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing 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.
However, because Bank5 Connect is a member of the Depositors Insurance Fund (DIF), all deposits above the FDIC limit are insured in full. Accordingly, all noninterest-bearing transaction account deposits that are no longer insured by the FDIC will be insured in full by the DIF effective January 1, 2013.