Bancroft State Bank is participating in the FDIC's Transaction Account Guarantee Program

 Under this program, from December 31,2010 through December 31, 2012, all noninterest-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.

The insurance coverage on noninterest-bearing transaction deposit accounts is over and above the $250,000 in coverage provided to a customer already. For example, if a customer has $500,000 in a noninterest-bearing transaction deposit account and $250,000 in a certificate of deposit, the FDIC would fully insure the entire $750,000. The full deposit insurance coverage for non-interest bearing deposit transaction accounts cover all such accounts in the bank regardless of ownership. For example, it does include municipal or government deposits.

All funds in noninterest-bearing transaction deposit accounts held in domestic offices and insured branches in Puerto Rico and U.S. territories and possessions of participating FDIC-insured institutions will be fully guaranteed under the transaction account guarantee component of the Temporary Liquidity Guarantee Program. A "noninterest-bearing transaction account" is defined as a transaction account with respect to which interest is neither accrued nor paid and on which the insured depository institution does not reserve the right to require advance notice of an intended withdrawal. This definition encompasses traditional demand deposit checking accounts that allow for an unlimited number of deposits and withdrawals at any time. However, for purposes of the transaction account guarantee program, the FDIC is including in the definition of a noninterest-bearing transaction account and accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts.

It does not include other accounts, such as traditional checking or demand deposit accounts that may bear interest, NOW accounts, and money market deposit accounts (MMDA).

For more information about temporary FDIC insurance coverage for transaction accounts, visit