NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE 
COVERAGE FOR TRANSACTION ACCOUNTS 
 
All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules. 
 
The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest.  It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs"). 
 
For more information about temporary FDIC insurance coverage of transaction accounts, visit FDIC's website. 
 
Important Disclosure Regarding the FDIC's Transaction Account Guarantee Program 
Beginning July 1, 2010 The Edgartown National Bank will no longer participate in the FDIC's Transaction Account Guarantee Program.  Thus, after June 30, 2010, funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000 under the FDIC's general deposit insurance rules. 
 
FDIC Insurance  
FDIC Insurance is available to depositors in each of the following ownership categories. It is possible for depositors to be insured for amounts greater than $250,000 depending on the number of accounts and deposit balances in each ownership category. Please call 508-627-1100 or visit one of our four conveniently located branch offices for a free consultation to discuss your total FDIC Insurance coverage.  
 
Please note: On January 1, 2014, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner. 
 
Basic FDIC Deposit Insurance Coverage Limits* 
Ownership Category                                               Insurance $$$ 
Single Accounts  
(owned by one person)                                          $250,000 per owner 
 
Joint Accounts 
(two or more persons)                                          $250,000 per co-owner 
 
IRAs and certain other retirement accounts         $250,000 per owner 
 
Trust Accounts                                                        $250,000 per owner per beneficiary  
                                                                                       subject to specific limitations and  
                                                                                       requirements 
 
Corporation, Partnership and                                 $250,000 per corporation,  
Unincorporated Association Accounts                partnership or unincorporated  
                                                                                       association 
 
Employee Benefit Plan Accounts                       $250,000 for the non-contingent,  
                                                                                       ascertainable interest of each  
                                                                                       participant 
Government Accounts                                          $250,000 per official custodian 
Non-interest Bearing Transaction Accounts          Unlimited coverage –  
                                                                                        Only at participating FDIC-insured  
                                                                                        banks and savings associations ** 
 
 
FDIC Insurance Coverage Example   
The following example shows how Mr. and Mrs. Jones could be covered for $1,000,000 in FDIC Insurance. 
 
Account Owner   Account Type   Ownership Category  Account Balance 
Mrs. Jones                Checking          Single Account                $250,000 
Mr. Jones                Money Market        Single Account                $250,000 
Mr. & Mrs. Jones        Certificate of       Joint Account                       $500,000 
                                       Deposit                                                                 ($250,000 per  
                                                                                                                       person) 
 
                                                     Total Account Balances…                  $1,000,000 
                                                     Total FDIC Insurance…                      $1,000,000 
 
Note: Mr. and Mrs. Jones and their beneficiaries could be covered for amounts above $1,000,000 with the addition of IRA and Trust Account deposit balances. 
 
FDIC Deposit Insurance Coverage 
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.  
 
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities even if purchased at an insured bank. 
 
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.  To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank. The chart shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met. 
 
* On January 1, 2014, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner. 
 
** Unlimited deposit insurance coverage is available through June 30, 2010, for non-interest bearing transaction accounts at institutions participating in FDIC’s Temporary Liquidity Guarantee Program. 
 
For more information on FDIC Insurance visit FDIC's website 
 
http://www.fdic.gov/deposit/deposits/unlimited/disclosure.html 
 
 


FDIC
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