FDIC Transaction Account Guarantee Program
Effective October 1, 2009, the FDIC has extended the program to June 30, 2010.
Elgin State Bank is participating in the FDIC's Transaction Account Guarantee Program. Under the Program, through June 30, 2010, all non-interest bearing transaction accounts and certain NOW accounts (checking with interest) 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. Please consult an Elgin State Bank Personal Banker to determine if your NOW account is eligible under the Program.
The following applies to accounts that involve the transfer of funds from a non-interest bearing transaction account into another type of account - such as an interest bearing savings or bank money market account, or a repurchase agreement.
- The funds in your non-interest bearing account at the close of business each day will be insured in full under the FDIC's Transaction Account Guarantee Program.
- Under the Program, the FDIC will not fully guarantee the funds swept into interest bearing savings or money market accounts. These funds will, however, still be subject to the temporary insurance limit of $250,000, in effect through December 31, 2009.
- Funds swept into repurchase agreements are not classified as deposits insured by the FDIC, and therefore are not guaranteed under the Transaction Account Guarantee Program; however, the sweep customer obtains a perfected security interest in identified assets held as collateral for the Bank's repo obligations, subject to a repurchase agreement.
For more information about FDIC insurance please visit the following resources:
Deposit Insurance
