Q:  Can an account that now earns interest be converted to a noninterest-bearing checking

account and upon such conversion be subject to full deposit insurance coverage as a

noninterest-bearing account?

A:  Only if the corresponding deposit agreement is modified to convert an account to a

noninterest-bearing transaction account as defined in the Dodd-Frank Deposit Insurance

Provision will an account be eligible for full deposit insurance as a noninterest-bearing

transaction account through December 31, 2012. If the account agreement in any way

allows for the possible accrual of interest, restricts the ability of the depositor to make

withdrawals, or requires the depositor to provide the IDI with advance notice of intended

withdrawals, then that account will not be insured under the Dodd-Frank Deposit Insurance

Provision as a noninterest-bearing transaction account.

This can be found in - FAQ#11 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf