FDIC Deposit Insurance
VCB is Participating in the Transaction Account Guarantee (TAG) Program
The Federal Deposit Insurance Corporation (FDIC) has given financial institutions the option to participate in the TAG Program. VCB is among the banks that have opted in so that our depositors have the maximum FDIC deposit insurance coverage that is available. Under that program and the recently passed Dodd-Frank Act, FDIC insurance coverage is unlimited for non-interest bearing deposits, like those for most business checking accounts, until December 31, 2012. Unlimited FDIC insurance coverage also applies, until December 31, 2010, to NOW (interest checking) accounts that earn an interest rate of no more than 0.25%.
FDIC Deposit Insurance Coverage
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the
United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities.
The standard insurance amount currently is $250,000 per depositor, per insured bank.
The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. (For details on the requirements, go to www.fdic.gov/deposit/deposits.)
The following chart shows standard insurance amounts for FDIC account ownership categories. All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount.
| FDIC Deposit Insurance Coverage Limits by account ownership category 1 | |
Single Accounts (owned by one person) |
$250,000 per owner2 |
Joint Accounts (two or more persons) |
$250,000 per co-owner2 |
Certain Retirement Accounts (includes IRAs) |
$250,000 per owner |
Revocable Trust Accounts |
$250,000 per owner per beneficiary up to 5 beneficiaries (more coverage available with 6 or more beneficiaries subject to specific limitations and requirements) |
Corporation, Partnership and Unincorporated Association Accounts |
$250,000 per corporation, partnership or unincorporated association |
Irrevocable Trust Accounts |
$250,000 for the non-contingent, ascertainable interest of each beneficiary |
Employee Benefit Plan Accounts |
$250,000 for the non-contingent, ascertainable interest of each plan participant |
Government Accounts |
$250,000 per official custodian |
Non-Interest Bearing Accounts |
No limit, 100% guaranteed2 |
To calculate your deposit insurance coverage
Use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) at: www.fdic.gov/edie.
For questions about FDIC coverage limits and requirements
Visit www.FDIC.gov/deposit/deposits, call toll-free 1-877-ASK-FDIC, or ask a representative at your bank.
We welcome the opportunity to speak with you about the safety provided by FDIC insurance. Please call or stop by any of our branches.
1These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
2 Virginia Commerce Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program and through the recently passed Dodd-Frank Act, through December 31, 2012, 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.This unlimited FDIC coverage for non-interest bearing accounts includes Interest on Lawyers Trust Accounts (IOLTA) and low-interest NOW accounts (defined as NOW accounts with interest rates no higher than 0.25%).
