FDIC FAQs-In light of the Dodd-Frank Deposit Insurance Provision and with the implementation of Section 627 if the DFA, how will the FDIC calculate deposit insurance coverage for government/public fund depositors?

Compliance > Deposit Operations > FDIC FAQs on Insurance and Payment of Interest on Demand Deposit Accounts

Q:  In light of the Dodd-Frank Deposit Insurance Provision and with the implementation

of Section 627 of the DFA, how will the FDIC calculate deposit insurance coverage for

government/public fund depositors?


A: Pursuant to the Dodd-Frank Deposit Insurance Provision, through December 31, 2012, the

FDIC will insure in full the noninterest-bearing transaction accounts of all

government/public fund depositors.


Prior to July 21, 2011 (when IDIs could begin to offer interest-bearing DDAs), each official

custodian of a government/public unit was also insured for up to $250,000 for the combined

amount of all time and savings accounts at each separately-chartered IDI.

For the period from July 21, 2011 through December 31, 2012,

-If the public unit is located in the same state at the IDI where the public funds are
deposited, then each official custodian, in addition to having temporary unlimited

deposit insurance coverage for all noninterest-bearing transaction accounts, will also

be insured for (a) up to $250,000 for the combined amount of all time and savings

accounts, and (b) up to an additional $250,000 for the combined amount of all

interest-bearing DDAs.

-If the public unit is located in a different state than the IDI where the public funds
are deposited, then each official custodian, in addition to having temporary

unlimited deposit insurance coverage for all noninterest-bearing transaction

accounts, will also be insured for up to $250,000 for the combined amount of all

time and savings accounts and interest-bearing DDAs.

After December 31, 2012, when the Dodd-Frank Deposit Insurance Provision terminates,


-If the public unit is located in the same state as the IDI where the public funds are
deposited, then each official custodian will be insured for (a) up to $250,000 for the

combined amount of all time and savings accounts, and (b) up to an additional

$250,000 for the combined amount of all (interest-bearing and noninterest-bearing)

DDAs.


-If the public unit is located in a different state than the IDI where the public funds
are deposited, then each official custodian will be insured for up to $250,000 for the

combined amount of all deposit accounts.


This can be found in - FAQ#22 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf


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