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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 also
includes Interest
on Lawyers Trust Accounts (“IOLTAs”). It does not include other
accounts, such as traditional checking or demand deposit accounts that
may earn interest, NOW accounts and money market deposit accounts.
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 business, individual and family deposits, and
assumes that all FDIC requirements are met.
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General FDIC Deposit Insurance Coverage Limits*
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Single Accounts (owned by one person)
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$250,000 per owner
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Joint Accounts (two or more persons)
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$250,000 per co-owner
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IRAs and certain other retirement accounts
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$250,000 per owner
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Trust Accounts
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$250,000 per owner per beneficiary subject
to specific limitations and requirements
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Corporation, Partnership and Unincorporated
Association Accounts
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$250,000 per corporation, partnership, or
unincorporated association
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Employee Benefit Plan Accounts
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$250,000 for the non-contingent,
ascertainable interest of each participant
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Government Accounts
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$250,000 per official custodian
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Noninterest-Bearing Transaction Accounts**
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Unlimited coverage
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*On July 21, 2010, the standard coverage limit of $250,000 was
made permanent. The limit applies per depositor, per insured
depository institution for each account ownership category.
**Noninterest-bearing checking accounts include Demand
Deposit Accounts (DDAs) and any transaction account that has unlimited
withdrawals and that cannot earn interest and Interest on Lawyers Trust
Accounts ("IOLTAs").
If you have questions about FDIC coverage limits and
requirements, visit
www.myFDICinsurance.gov, call toll-free 1-877-ASK-FDIC or ask a
representative at The Citizens National Bank of Southwestern Ohio.
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