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MAXIMIZING YOUR FDIC INSURANCE
The FDIC has taken unprecedented action to increase insurance coverage.
1. FDIC Insurance Coverage Increased to $250,000.
On October 3, 2008, FDIC deposit insurance was temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. This increase covers both interest bearing and non-interest bearing accounts. See below for ways to increase the amount of your FDIC insurance at National Bank of Arizona beyond $250,000.
2. FDIC provides temporary unlimited insurance coverage for non-interesting bearing deposit transaction accounts.
On October 14, 2008, the Federal Deposit Insurance Corporation (FDIC) announced a new program—the Temporary Liquidity Guarantee Program—to strengthen confidence and encourage liquidity in the banking system by providing full coverage of non-interest bearing deposit transaction accounts, regardless of dollar amount.
Any participating depository institution will be able to provide full deposit insurance coverage for non-interest bearing deposit transaction accounts, regardless of dollar amount. These are mainly payment-processing accounts, such as payroll accounts used by businesses but include all non-interest bearing deposit transaction accounts. This new, temporary guarantee—which expires at the end of 2009—will help stabilize these accounts.
National Bank of Arizona has chosen to participate in this program.
HOW TO INCREASE THE AMOUNT OF YOUR FDIC INSURANCE AT NATIONAL BANK OF ARIZONA BEYOND $250,000.
As a depositor in National Bank of Arizona, you should know how your deposits are insured, and how the amount of insurance protection can be increased beyond $250,000 through a combination of accounts. The following questions and answers provide you with information you need to make informed decisions regarding your deposits. For more information, we encourage you to use the FDIC Federal Deposit Insurance Estimator, available online at www.fdic.gov/edie/.
Q: What is the basic amount of FDIC insured protection for each depositor?
A: The basic insured amount for each depositor has temporarily been increased to $250,000. The FDIC insurance protection is extended to deposits at National Bank of Arizona, including savings, NOW accounts, cashiers checks, official checks, pension accounts, letters of credit, checking, certificates of deposit, money orders, IRA and Keogh accounts.
Q: How can I increase the amount of my FDIC insurance at National Bank of Arizona beyond $250,000?
A: If your account balances exceed $250,000, there are several quick and easy ways to increase or maximize your insurance coverage. Deposits maintained in different categories of legal ownership are separately insured. So you can have more than $250,000 insurance coverage in a single institution through a combination of different categories of ownership. The most common categories of ownership are single (or individual) ownership, joint ownership, and testamentary accounts.
In addition to the FDIC insurance on your other deposits, each depositor is also separately insured up to $250,000 for funds held for retirement purposes (i.e. Individual Retirement Accounts or Keoghs).
You cannot increase FDIC insurance by dividing funds owned in the same ownership category among different accounts. The type of account - whether checking, savings, certificate of deposit, or outstanding official check such as a cashier's check, or other form of deposit - has no bearing on the amount of insurance coverage. Furthermore, the use of Social Security numbers or taxpayer identification numbers does not determine insurance coverage.
EXAMPLES:
#1 $2,000,000 FDIC-Insured Deposits for a Married Couple
Husband's Individual Account |
$250,000 |
Wife's Individual Account |
$250,000 |
Husband and Wife Joint Account |
$500,000 |
Husband's IRA |
$250,000 |
Wife's IRA |
$250,000 |
Husband Payable on Death to Wife* |
$250,000 |
Wife Payable on Death to Husband* |
$250,000 |
#2 $3,500,000 FDIC Insured Deposits for a Family or Group of Four
Husband's Individual Account |
$250,000 |
Wife's Individual Account |
$250,000 |
Husband and Wife Joint Account |
$500,000 |
1st Child's Aggregate Joint Account Funds |
$250,000 |
2nd Child's Aggregate Joint Account Funds |
$250,000 |
Husband's IRA |
$250,000 |
Wife's IRA |
$250,000 |
Husband Payable on Death to Wife* |
$250,000 |
Wife Payable on Death to Husband* |
$250,000 |
Husband Payable on Death to 1st Child* |
$250,000 |
Husband Payable on Death to 2nd Child* |
$250,000 |
Wife Payable on Death of 1st Child* |
$250,000 |
Wife Payable on Death of 2nd Child* |
$250,000 |
Q: How is FDIC insurance calculated for my family living trust?
A: Accounts in the name of a living trust set up by a lawyer, also referred to as totten, testamentary, or revocable trusts, are insured separately from any individual or jointly-owned funds of the owner(s). For the purposes of FDIC insurance coverage, a beneficiary is defined as a natural person, a charitable organization, or a non-profit entity properly organized under IRS code. Each owner is insured to $250,000 for each entitled beneficiary. Take a look at the following example:
The Family Trust
Trustees: Husband and Wife
Beneficiaries: Their two children
| Husband in trust for 1st Child* |
$250,000 |
Husband in trust for 2nd Child* |
$250,000 |
Wife in trust for 1st Child* |
$250,000 |
Wife in trust for 2nd Child* |
$250,000 |
NOTE: This trust states that the beneficiaries' share will pass to the beneficiaries' children if the beneficiary dies before the trustee(s). These grandchildren are not entitled to any trust assets or insurance coverage while their parent is alive.
For more information about the FDIC, please click here to visit their website. To understand how to maximize your own FDIC coverage, you can speak to a helpful National Bank of Arizona representative by calling 877-932-3342 (877-WEB-FDIC).
* These illustrations also apply to other beneficiaries. A beneficiary is defined as a natural person, a charitable organization, or a non-profit entity properly organized under IRS code. For other qualifying combination accounts, check with a bank representative, or ask for the FDIC brochure, "Your Insured Deposit."
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