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FDIC Transaction Account Guarantee Program
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Transaction Account Guarantee Program
Susquehanna Bank is participating in the FDIC’s Transaction Account Guarantee Program.
Under that program, through December 31, 2010, 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.
Through June 30, 2010, the Transaction Account Guarantee Program also covers Negotiable
Order of Withdrawal (NOW) accounts that pay an interest rate of .50% or less, (under
this program, these are noninterest-bearing transaction accounts), and Interest
on Lawyers Trust Accounts (IOLTAs). Effective July 1, 2010, the Transaction Account
Guarantee Program will cover NOW accounts that pay an interest rate of .25% or less.
Transaction Account Guarantee Program & Sweep Arrangements
If you have a sweep arrangement that transfers funds from a noninterest-bearing
transaction account into an interest-earning account, please remember that the interest-earning
account is not eligible for the FDIC’s full guarantee under the Transaction Account
Guarantee Program. Instead, funds in the interest-earning account will continue
to be insured under the FDIC’s basic coverage limit of $250,000 per owner. The balances
in these accounts are deposits and in the event of a bank failure, the amount of
deposit insurance coverage available for accounts under this form of sweep will
be determined by the account in which the funds are held at the end of the business
day.
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