FDIC INSURANCE UPDATE

As you are probably aware, there have been additional increases to the FDIC insurance limits for non-interest bearing checking accounts.
Effective October 14, 2008 the FDIC will provide full FDIC deposit insurance coverage for non-interest bearing transaction deposit accounts. Like the other recent increases, this provision also expires on December 31, 2009. Recent media reports seem to indicate that the increase only applies to business accounts. This is not the case. While businesses will definitely be the group that benefits the greatest from this increase, the coverage is available for both personal and non-personal accounts.

What this means is that the FDIC will insure, dollar-for-dollar, the amount of money that a customer has in a non-interest bearing account without applying the $250,000 limit (in other words, unlimited insurance). The FDIC is still in the process of updating EDIE with this most recent change. Until that change is implemented, you can either explain to the customer that EDIE does not reflect the change, or you can exclude these types of accounts from the EDIE calculations. When you use EDIE it will tell you if the change has not yet been finalized. If it does not tell you then you should it has been corrected.