Increased FDIC insurance has been extended

By Jim Wilmarth 

Commercial Loan Officer at Bank of Amador

 

Community Banks can offer you the peace of mind that comes from knowing that your deposits are federally insured and backed by the full faith and credit of the U.S. government.  

Under legislation passed in May, the FDIC insures each account holder's funds to at least $250,000 until Dec. 31, 2013.*  In addition, some community banks (like Bank of Amador) are participating in the Transaction Account Guarantee Program, a voluntary program that provides unlimited deposit insurance coverage for non-interest bearing transaction accounts, regardless of dollar amount. 

 If your savings exceed the amount covered by the basic insurance limits, you can extend your FDIC coverage by establishing different types of accounts. The FDIC insures accounts in different ownership categories separately.

 Example

In this example, Sally and Sam are owners of All Smiles Dental. 

Account Owner	Deposit Type	Account Balance
All Smiles Dental	Business Checking	Unlimited
Sam or Sally	Personal Checking	Unlimited
Sally	Money Market, Savings and/or CD	$250,000
Sam	Money Market, Savings and/or CD	$250,000
Sam & Sally (50/50 ownership)	Money Market, Savings and/or CD	$500,000
Amount Insured	$1,000,000 in Money Market, Savings and/or CD PLUS UNLIMITED in their personal and business non-interest bearing transactional checking accounts

* After Dec. 31, 2013, the basic insurance limit will return to $100,000, barring further legislation, and retirement accounts will be separately insured to $250,000.

 Jim Wilmarth is a Commercial Loan Officer at Bank of Amador with over 21 years of banking experience.   For more information, contact Jim at (209) 223-7237 or jwilmarth@bankofamador.com.

COPYRIGHT AMADOR COUNTY CHAMBER OF COMMERCE