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?
Effective through December 31, 2013:
- Basic Insurance: Basic FDIC insurance has been increased from $100,000.00 to $250,000.00 per depositor per insured financial institution
On January 1, 2014:
- Basic FDIC insurance will go back to $100,000.00, except for deposits in IRA’s and certain other retirement accounts, which will remain at $250,000.00.
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.
Temporary Liquidity Guaranty Program: Central State Bank is participating in the FDIC’s Transaction Account Guarantee Program under which all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Funds automatically transferred to a non-deposit account or other account not subject to this Program will void the FDIC/s guarantee with respect to the transferred funds. Coverage under this Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.
On December 31, 2011:
- The separate unlimited FDIC guarantee on non-interest bearing transaction accounts will be eliminated.
