FDIC Insurance Update – 5/22/09

As we are all aware, on October 3, 2008, FDIC insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. On May 20, 2009, this temporary increase in coverage was extended through December 31, 2013. Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor.

This extension does NOT apply to the Transaction Account Guarantee Program which provides unlimited coverage for eligible non-interest bearing transaction accounts through December 31, 2009. The unlimited coverage under the Transaction Account Guarantee Program remains in effect for depositors only through December 31, 2009.

Fidelity Bank is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2009, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.