WHAT IS FDIC INSURANCE?
What does it cover?

• Central State Bank is a member of the Federal Deposit Insurance Corporation (FDIC).
• The FDIC was created in 1933 to provide insurance protection for depositors of failed banks and to help maintain sound conditions in the nation’s banking system.
• The FDIC is an independent agency of the US Government.  Since its inception, the FDIC has responded to thousands of bank failures.  All insured deposits of failed banks and thrifts have been protected by the FDIC. 
• The FDIC web site is http://www.fdic.gov/.  This has much more information about insurance coverages. 

What is insured by the FDIC?

• Checking Accounts
• NOW Accounts
• Savings Accounts
• Money Market Savings Accounts
• Certificate of Deposits
• Deposit Products (such as CD's or savings accounts) held in IRAs
• Outstanding Cashier’s Checks, Money Orders, Interest Checks, and Drafts issued by Central State Bank

What amount of insurance coverage do I have for my accounts?

The FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. In addition to the separate unlimited insurance coverage on non-interest bearing consumer and business checking accounts, it is possible to qualify for more than the current $250,000.00 in coverage at one insured bank if you own deposit accounts in different ownership categories. The ownership categories are (1) single, (2) joint, (3) revocable trust (informal revocable trusts such as Payable on death accounts and formal revocable trusts such as living/family trusts created for estate planning purposes), (4) irrevocable trusts, (5) certain retirement plans, (6) employee benefit plans, (7) business (corporation, partnership, unincorporated associations), and (8) government.

NOTICE OF CHANGES IN 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 (“IOLTA’s).  It does not include other accounts such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts. 

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.