Alert October 07, 2008

FDIC Deposit Insurance Coverage Increased Temporarily

The FDIC increased the limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor pursuant to Section 136 of the Emergency Economic Stabilization Act of 2008 (the “EESA”).  The increase in coverage became effective immediately upon President Bush’s signing of the EESA on October 3, 2008.  The basic deposit insurance limit will return to $100,000 on December 31, 2009.  The FDIC authorized insured depository institutions (“DIs”) to add the following statement to a DI’s signage and customer information materials:

“On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.”