The Federal Deposit Insurance Corporation (
FDIC) is an independent agency of the United States government that protects the funds depositors place in FDIC-insured institutions. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic. FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.
The standard insurance amount currently is $250,000 per depositor. The $250,000 limit is permanent for IRAs and other certain requirement accounts. The $250,000 limit is temporary for all other deposit accounts through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor.
To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured institution. The chart below assumes that all FDIC requirements are met (for details on requirements, go to www.fdic.gov/deposit/deposits ).
FDIC Insurance Coverage Limits (Through December 31, 2013)*
| Ownership |
FDIC Coverage |
| Single Accounts (owned by one person) |
$250,000 per owner |
| Joint Accounts |
$250,000 per co-owner |
| IRAs and other Certain Retirement Accounts |
$250,000 per owner |
| Revocable Trust Accounts |
$250,000 per owner per beneficiary
up to 5 beneficiaries (more coverage
is available with 6 or more beneficiaries
subject to specific limitations and requirements) |
Corporation, Partnership and
Unincorporated Association Accounts |
$250,000 per corporation, partnership
or unincorporated association |
| Irrevocable Trust Accounts |
$250,000 for the non-contingent,
ascertainable interest of each beneficiary |
| Employee Benefit Plan Accounts |
$250,000 for the non-contingent
ascertainable interest of each participant |
| Government Accounts |
$250, 000 per official custodian |
These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
You can calculate your insurance coverage using the FDIC's Electronic Deposit Insurance Estimator at www.myFDICinsurance.gov. For questions about FDIC coverage, call toll-free 1-877-ASK-FDIC, or ask your branch representative.
*Unlimited deposit insurance coverage for noninterest-bearing transaction accounts (as defined in 12 C.F.R Part 370) at institutions participating in the FDIC's Transaction Account Guarantee Program is available through December 31, 2009. The extension of the temporary standard insurance amount of $250,000 through 2013 does not apply to the Transaction Account Guarantee Program.
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Salisbury Bank and Trust Company is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through June 30, 2010, 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.
For the purpose of the Transaction Account Guarantee Program, the FDIC is including in the definition of non-interest bearing transaction accounts: Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts; and NOW accounts with interest rates no higher than .50%.
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