With banks and the economy in the news so much lately, 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 basic limit on federal deposit insurance coverage has been temporarily increased from $100,000 to $250,000 per depositor, with the potential of structuring deposits in certain ways to increase coverage significantly beyond $250,000. By law, the basic FDIC insurance limit will return to $100,000 on January 1, 2014, except for certain retirement accounts, which include all IRA deposit accounts. 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 June 30, 2010, all “non-interest 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. A “non-interest bearing transaction account” is defined as a non-interest 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 and NOW accounts having interest rates no higher than 0.50% (either at time of opening, or if opened prior to January 1, 2009, at all times after December 31, 2008).

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 current limits of $250,000 per depositor/depositor category.
 

Questions and Answers

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?
• What does the FDIC Insure?
• What is not covered by FDIC basic deposit insurance coverage?
• Does Mercantile Bank participate in the FDIC’s Transaction Account Guarantee Program?
• How do I estimate coverage for all my deposits?
• What happens to my insurance coverage on January 1, 2014?
• Where can I obtain more information about FDIC insurance?

What does the FDIC Insure? The FDIC guarantees all traditional types of deposit accounts (checking, savings, money market savings, and CDs) up to $250,000 per depositor and guarantees bank individual retirement accounts (IRAs) up to $250,000 per owner. You may qualify for more than the basic insurance coverage at one insured bank. The FDIC provides separate insurance coverage for deposits held in different “ownership categories.” Learn more about ownership categories at www.fdic.gov* or by clicking here*. Please note that the FDIC temporarily increased basic deposit insurance from $100,000 to $250,000 per depositor through December 31, 2013. The separate FDIC limit on bank IRA accounts is not temporary and will remain at $250,000. Back to Q&A

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 June 30, 2010, all “non-interest 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. A “non-interest bearing transaction account” is defined as a non-interest 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 and NOW accounts having interest rates no higher than 0.50% (either at time of opening, or if opened prior to January 1, 2009, at all times after December 31, 2008). 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 current limits of $250,000 per depositor/depositor category. Back to Q&A

What happens to my insurance coverage on January 1, 2014? The basic limit for federal deposit insurance coverage is scheduled to go back to $100,000, except for certain retirement accounts, which include IRA deposit accounts. IRA deposit account coverage will remain at $250,000. Back to Q&A