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 www.fdic.gov