Under the program, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account through December 31, 2010. Coverage under the Transaction Account Guarantee Program (TAGP) is in addition to and separate from the $250,000 coverage available under the FDIC's general deposit insurance rules.
How is First CornerStone Bank able to offer unlimited FDIC Insurance?
By participating in the FDIC's voluntary program at its own expense, First CornerStone is able to offer this benefit to its customers.
How does the Bank's participation in this program benefit me?
This added coverage will be particularly valuable to small businesses to assure payroll and other operating accounts are fully insured. First CornerStone sees this program as a way to provide extra deposit insurance protection for its customers and ensure your money is safe.
For most of us, our deposits fall within the FDIC's deposit insurance coverage limits. However, if you exceed the limit, simply contact your local branch and ask us how to maximize your FDIC deposit coverage.
Can I receive unlimited FDIC Insurance at First CornerStone Bank?
Yes. All of First CornerStone's non-interest bearing transaction deposit accounts are 100% FDIC-insured for the entire amount in the account through December 31, 2010.
Negotiable Order of Withdrawal (NOW) Accounts at First CornerStone Bank are excluded from this additional coverage, but are insured under the general FDIC coverage of $250,000 per depositor. The Bank offers certain negotiable order of withdrawal (NOW) account products that do not qualify as noninterest-bearing transaction accounts under the TAGP, and therefore are generally not eligible for the guarantee. If any interest rate paid on a tiered account or an indexed account exceeds, or potentially could exceed, 0.25%, then the account is not covered under the Transaction Account Guarantee Program, but is still covered up to $250,000 under the FDIC’s general deposit insurance. However, the TAGP covers nontiered NOW accounts with rates at or below 0.25%.
Is this part of the bailout program?
No. This is not part of the Troubled Assets Relief Program (TARP) or bailout program. The Transaction Account Guarantee Program is a voluntary service provided by the FDIC. First CornerStone chose to participate at its own expense to benefit its customers. No taxpayer or "bailout" funds are being used to pay for the additional coverage; this program will be paid for by participating banks.
Is the unlimited FDIC Insurance coverage permanent?
No. The Transaction Account Guarantee Program and new FDIC general deposit insurance coverage limits are temporary programs and will remain in effect until December 31, 2010.
How does FDIC insurance work?
Deposits at First CornerStone Bank are federally insured by the FDIC up to the maximum legal limits. On October 3, 2008, FDIC general deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013. First CornerStone Bank checking, savings, certificates of deposit (CDs), money market accounts, and other interest-bearing deposit accounts, when combined, are now FDIC-insured up to $250,000 per depositor. Joint accounts may be insured up to $250,000 per owner in addition to the $250,000 of insurance available on those same owner's individual accounts.
The FDIC provides separate coverage up to $250,000 for retirement accounts, such as Individual Retirement Accounts (IRAs) and Keoghs.
The Transaction Account Guarantee Program is in addition to and separate from the $250,000 coverage available under the FDIC's general deposit insurance rules.
To help you determine your insurance coverage, please use an easy-to-use online FDIC tool called EDIE The Estimator, which First CornerStone Bank is making available to you on our website.
