FDIC Insurance

Standard Maximum Deposit Insurance

FDIC insurance covers the balance of each depositor’s account, dollar-for-dollar, including principal and any accrued interest up to the insurance limit of $100,000 (or $250,000 per owner for self-directed retirement accounts).  On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.  On May 20, 2009, the temporary increase in the standard maximum deposit insurance from $100,000 to $250,000 was extended through December 31, 2013.  On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000.

Transaction Account Guarantee Program

Colony 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 is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.

For the Transaction Account Guarantee Program (TAGP) that is effective until December 31, 2010, the following are accounts/funds that would qualify for the full (100%) FDIC insurance coverage:

• All funds in noninterest-bearing transaction deposit accounts.
• A noninterest-bearing transaction account is defined as a transaction account with respect to which interest is neither accrued nor paid and on which Colony Bank does not reserve the right to require advance notice of an intended withdrawal.  For purposes of the TAGP, the definition of noninterest-bearing transaction account includes:
  • Traditional demand deposit checking accounts that allow for an unlimited number of deposits and withdrawals at any time.
  • Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts.
  • Negotiable order of withdrawal accounts (NOW accounts) with interest rates no higher than 0.25% for which Colony Bank has committed to maintain the interest rate at or below 0.25% effective July 1, 2010.
  • Public (government/municipal) funds held in noninterest-bearing transaction deposit accounts.
  • Cashier’s checks and money orders issued by Colony Bank.
  • Escrow accounts held in noninterest-bearing transaction deposit accounts.

The extension with regards to the temporary increase in the standard maximum deposit insurance announced on May 20, 2009, does not apply to the Transaction Account Guarantee Program.  The unlimited coverage for noninterest-bearing transaction accounts under the Transaction Account Guarantee Program remains in effect only through December 31, 2010.

Additional information regarding FDIC insurance and the temporary changes in FDIC insurance coverage may be accessed via the FDIC website at
http://www.fdic.gov/deposit/deposits/changes.html.