FDIC Changes for 2013

By May 8, 2013Insurance Law

In our current economy, it’s common for people to have questions regarding their financial savings and to obtain the comfort of being reassured that their money is protected. Beginning in 2013, the FDIC has made some changes. We wanted to take a moment to explain exactly what the FDIC does and what recent changes have been made.

What Is The FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the federal government. The FDIC was created in 1933 as a result of the thousands of banks which failed during the 1920s and early 1930s. Their mission is to promote and maintain the publics confidence in the United States financial system. They do this by insuring deposits in banks and thrift institutions up to and including $250,000. Not one depositor has lost a single penny of their insured funds, as a result of a failure, since the FDIC insurance began on January 1, 1934.

The FDIC does not receive any Congressional appropriations and is solely funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in United States Treasury securities. Currently, the FDIC insures approximately $9 trillion of deposits in virtually every bank and thrift across the country.

FDIC Changes 2013


Unless there is a change in federal law, beginning January 1, 2013, funds deposited in “non-interest bearing transaction accounts” no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts, including all “non-interest bearing transaction accounts”, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (IOLTAs). It does not include other accounts such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.

For more information, visit http://www.fdic.gov/deposit/deposits/unlimited/expiration.html

Leave a Reply