What deposit accounts are considered “non-interest-bearing transaction accounts?” |
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For purposes of the Transaction Account Guarantee Program, the following are considered non-interest-bearing transaction accounts:
- 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; and
- Certain Negotiable Order of Withdrawal (NOW) accounts with interest rates no higher than .25 percent.
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What deposit accounts are not considered “non-interest-bearing transaction accounts?” |
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Money market deposit accounts (MMDAs), savings accounts and time deposits are not considered to be non-interest-bearing transaction accounts. . |
Are all U.S. banks participating in the Transaction Account Guarantee Program? |
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No. Participation in the Transaction Account Guarantee Program is optional. Although Lone Star State Bank has elected to participate, other banks may elect not to participate. |
How can I confirm an eligible insured depository institution’s participation in the program? |
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The FDIC will maintain and post on its website a list of eligible entities that opt out of the Transaction Account Guarantee Program. In addition, beginning December 19, 2008, every insured depository institution that offers non-interest-bearing transaction accounts must post a notice in each branch and on its website clearly indicating whether or not the institution is participating in the program. |
Who can I contact for more detailed information? |
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Should you have questions about the Transaction Account Guarantee Program or any other deposit insurance matter, please see one of our Bankers. Additionally, information can be found on the FDIC’s website (www.fdic.gov/tlgp). . |
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