In the past, your bank may have participated in the Temporary Account Guarantee (TAG) Program established by the FDIC. As of December 31, 2010, the program will be replaced by the new FDIC rules under the Dodd-Frank Act. As a result, all balances in non-interest bearing transaction accounts will be guaranteed by the FDIC, regardless of the dollar amount, until December 31, 2012.
What are non-interest bearing transaction accounts?
For consumers – regular checking accounts that do not earn interest. Unlike TAG, interest checking accounts will no longer be covered above $250,000.
Regular commercial checking accounts not earning interest. This includes packaged accounts that allow so many items free per month with a certain balance. It also include commercial analysis accounts.
Are Money Market Accounts Covered?
No – technically, Money Market Accounts are savings accounts and are covered up to $250,000 per depositor.
How do the new FDIC insurance rules under the Dodd-Frank Act affect existing FDIC insurance?
The FDIC coverage on non-interest bearing transaction accounts is over and above the current $250,000 per depositor coverage.