BusinessFDIC Extends Transaction Account Guarantee (TAG) Program Through
December 31, 2010
On April 13, 2010, the Federal Deposit Insurance Corporation (FDIC) announced the extension of the Transaction Account Guarantee (TAG) program through December 31, 2010. Under the TAG program, all noninterest-bearing transaction accounts are fully guaranteed for the entire amount in the account. In addition, the FDIC announced that the maximum interest rate limit for interest-bearing NOW accounts guaranteed under the TAG program will be reduced from 0.50 percent to 0.25 percent, effective July 1, 2010. Money Market Deposit Accounts, Savings Accounts, Certificates of Deposit, NOW accounts with interest rates greater than 0.25 percent and other interest bearing accounts are not covered by the FDIC's Transaction Account Guarantee Program. Banks participating in the TAG program must pay a special assessment fee to the FDIC.
Pacific Continental participates in the TAG program (TAGP).
Please note that the TAG program provides expanded deposit insurance beyond the standard FDIC deposit insurance coverage of $250,000 per depositor through December 31, 2013. Under current FDIC rules, on January 1, 2014, the standard deposit insurance amount will return to $100,000 per depositor for all account categories except Individual Retirement Accounts and other certain retirement accounts, which will remain at $250,000 per depositor.
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. This unlimited guarantee is temporary and will remain in effect at participating institutions until December 31, 2010. If you have a sweep arrangement that moves funds from a noninterest-bearing transaction account into an interest-bearing account the funds being swept, reclassified or otherwise transferred to the interest-bearing account are not eligible for the Transaction Account guarantee. These funds are, however, subject to the temporary FDIC coverage limit of $250,000 per depositor. If you have established a threshold balance for your deposit account above which and/or below which funds will be swept which would reduce or increase your loan account balance, the funds remaining in the deposit account will be insured under the applicable FDIC insurance rules and limits.
For additional information about coverage limits and requirements, please visit any of the following sources:
Online at www.myFDICinsurance.gov call toll-free 1-877-ASK-FDIC
Or contact us at banking@therightbank.com or 1-877-231-2265
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