With banks and the economy in the news so much these days, we know you are thinking more about the safety of your money. The good news is that your FDIC insurance coverage has increased. Here are some facts:
- Mercantile Bank, a division of Carolina First Bank, is a member of the Federal Deposit Insurance Corporation (FDIC).
- The Federal Deposit Insurance Corporation (FDIC) was established to provide insurance protection for depositors of failed banks and to help maintain sound conditions in our nation's banking system.
- The FDIC is an independent agency of the U.S. Government. FDIC insurance is backed by the full faith and credit of the U.S. Government. Depositors have never lost a penny of insured deposits due to a bank failure.
The recent passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides for a permanent increase of the basic limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor, with the potential of structuring deposits in certain ways to increase coverage significantly beyond $250,000. IRA deposit account coverage was increased permanently to $250,000 per depositor in 2006.
Additionally, Mercantile Bank, a division of Carolina First Bank, is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2010, 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 (which is currently in effect through December 31, 2010) is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. A “noninterest-bearing transaction account” is defined as a noninterest-bearing transaction account and on which the insured bank does not reserve the right to require advance notice of an intended withdrawal. It also includes IOLTA and IOTA accounts as well as NOW accounts that are contractually structured to have interest rates no higher than 0.50% through June 30, 2010, and no higher than 0.25% after June 30, 2010.
Exception to Coverage: Funds that are swept to accounts not qualifying for the unlimited coverage (for example, an interest-bearing money market account) will not be guaranteed under the FDIC’s Transaction Account Guarantee Program. Instead, funds swept to those accounts will be insured under the FDIC’s general deposit insurance rules, including its limits of $250,000 per depositor / depositor category.
Below are some common questions about the FDIC and coverage limits. We hope this Q&A will help you better understand your insurance coverage and provide you with tips for making sure all your deposits are fully protected.
What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. The FDIC protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
The FDIC guarantees deposit accounts (checking, savings, money market savings, and CDs) up to the maximum allowed by law.
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What is not covered by FDIC basic deposit insurance coverage?
Investment products (mutual funds, annuities, life insurance policies, stocks, and bonds) are not FDIC insured, may lose value, and are not bank guaranteed.
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Does Mercantile Bank participate in the FDIC’s Transaction Account Guarantee Program?
Yes, Mercantile Bank, a division of Carolina First Bank, is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2010, 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 (which is currently in effect through December 31, 2010) is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. A “noninterest-bearing transaction account” is defined as a noninterest-bearing transaction account and on which the insured bank does not reserve the right to require advance notice of an intended withdrawal. It also includes IOLTA and IOTA accounts as well as NOW accounts that are contractually structured to have interest rates no higher than 0.50% through June 30, 2010, and no higher than 0.25% after June 30, 2010.
Exception to Coverage: Funds that are swept to accounts not qualifying for the unlimited coverage (for example, an interest-bearing money market account) will not be guaranteed under the FDIC’s Transaction Account Guarantee Program. Instead, funds swept to those accounts will be insured under the FDIC’s general deposit insurance rules, including its limits of $250,000 per depositor / depositor category.
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How do I estimate coverage for all my deposits?
The FDIC created an online tool that provides customized information about your insured accounts. The Electronic Deposit Insurance Estimator (EDIE) is located at myfdicinsurance.gov.* You may also call us at 800.238.8681or visit one of our branch locations.
When using EDIE, please note that Mercantile Bank, a division of Carolina First Bank, is participating in the FDIC’s Transaction Account Guarantee Program. Eligible accounts receive full coverage, regardless of the actual amount in each account, through December 31, 2010.
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*Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security, or accessibility standards as ours. Mercantile Bank neither endorses nor guarantees offerings of the third party providers, nor is Mercantile Bank responsible for the security, content, or availability of third-party sites, their partners, or advertisers.