Your Insured Deposits

Blackhawk Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2010, all non-interest bearing transaction accounts and NOW accounts paying less than 0.25 percent 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. 

FDIC Transaction Account Guarantee Program Business Account Considerations 
 
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.

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 FDIC has temporarily increased coverage to $250,000 until December 31, 2013.  On January 1, 2014, the standard insurance amount will return to to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor. Deposits held in different categories of ownership – such as single or joint accounts – may be separately insured.  (Learn all about the FDIC @ www.fdic.gov/about/learn/symbol/index.html.)

In April 2006, federal law changed to allow certain retirement accounts to be covered up to $250,000 by the Federal Deposit Insurance Corp. In addition, there's a program called CDARS (pronounced ‘cedars’) that allows you to keep up to $50 million invested in CDs at one bank, and have it all covered by FDIC insurance.

How does CDARS Work?
CDARS® is the Certificate of Deposit Account Registry Service®. And it's the most convenient way to enjoy full FDIC insurance on deposits of up to $50 million. With CDARS, you sign one agreement with a participating local bank or other financial institution of your choice, earn one interest rate, and receive one regular statement. It's that easy.

CDARS is the perfect solution for many depositors — from non-profits and public funds to businesses, advisors (including trustees, CPAs, financial planners and lawyers) and individuals, as well as socially-motivated investors.