May 26, 2010 Update:
The Transaction Account Guarantee Program has been extended until December 31, 2010. Note that the basis for calculating the Transaction Account Guarantee Program assessments under the extension beginning July 1, 2010 was modified to one that uses average daily balances. In addition, the maximum interest rate on NOW accounts guaranteed under the program has been lowered to 0.25 percent. 

October 1, 2009 Update:
Temporary Liquidity Guarantee Program is extended through June 30, 2010. See December, 2008 update below for full details of program.

May 20, 2009 Update:
President Obama signed into law a critical deposit insurance bill that extends the current $250,000 FDIC insurance coverage through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. This supersedes the October 3, 2008 changes which extended coverage through 2009.

December, 2008 Update:
Park Bank participates in new FDIC program, providing unlimited FDIC insurance coverage on certain transaction accounts through 12/31/2009.

Park Bank has recently opted to participate in the FDIC’s Transaction Guarantee Program, a voluntary expanded insurance program which provides, without charge to depositors, full guarantee on all non-interest bearing transaction accounts held by any depositor, regardless of dollar amount, through December 31, 2009.

Under the FDIC Transaction Guarantee Program, all non-interest bearing transaction accounts held at Park Bank are fully guaranteed by the FDIC for the entire amount in the account through December 31, 2009. The term “non-interest bearing transaction account” is defined to include the following:

• Traditional demand deposit or checking accounts (including all personal and business checking accounts that do not earn interest)
• Negotiable Order of Withdrawal (NOW) accounts, traditionally known as savings accounts with interest rates no higher than 0.50% 
• Interest on Lawyer Trust Accounts (also known as IOLTA’s)

Coverage under this program is in addition to and separate from the coverage available under the FDIC’s general deposit rules, which includes temporarily increased FDIC deposit insurance from $100,000 to $250,000 per depositor through December 31, 2009.

October, 2008 Update:

New Increased FDIC Insurance

Consumers will benefit directly from a provision in the new Emergency Economic Stabilization Act that immediately increased the basic FDIC insurance coverage limits on your money in insured institutions to $250,000. The new limits are fixed through December 31, 2009.

The new temporary increased coverage not only applies to accounts held by individuals, but also accounts held by corporations, partnerships, limited liability companies and municipalities. There is no cost to the public for the FDIC insurance coverage as it is paid for through assessments on insured financial institutions. After December 31, 2009, the basic FDIC insurance coverage limit will be $100,000 except for certain retirement accounts, like IRAs, which will continue to receive FDIC insurance coverage up to $250,000.

FDIC insurance covers all types of deposits received by you at an insured bank, including deposits in checking, NOW, and savings accounts, money market deposit accounts, and certificates of deposit (CDs). Safe deposit boxes, and their contents, are not insured.

Remember, even under the prior FDIC insurance limits, there are ways to easily and legally structure your accounts at a single financial institution to receive FDIC insurance coverage in amounts greater than the basic insurance limit. Under the new temporary increased limits, for example, a husband and wife by themselves could structure multiple accounts to easily receive up to $2 million in FDIC insurance coverage, while a family of four could receive up to $3 million in FDIC insurance coverage at one insured institution.

No one has ever lost a penny of insured deposits in the 75 years of FDIC’s existence. Contact Park Bank at 414.466.8000 to understand how the new temporary increased coverage specifically benefits you.

For more information about recent regulatory changes affecting FDIC deposit insurance coverage, please click here.