Transaction Account Guarantee - Information & FAQ
The Transaction Account Guarantee (TAG) program has been a temporary government program that is scheduled to end on December 31, 2012. The two-year program was initiated when it appeared that confidence was low in the banking system, a situation that no longer exists. Banking performance has improved significantly and the need for a program such as TAG is no longer necessary.
1. What specifically did the TAG provide? The program only affected transaction accounts that paid no interest and had more than $250,000 in them.
2. Are there new limits of coverage? Yes. When the TAG program was initiated, deposit insurance coverage increased from $100,000 to $250,000 for certain accounts, a level of coverage that will continue.
3. So what is changing? In December 2010, at all FDIC-insured institutions, deposits held in noninterest-bearing transaction accounts became fully insured regardless of the amount in the account. As of December 31, 2012, limits on insurance are being reinstituted and noninterest bearing transaction accounts will no longer be insured separately from depositor’s other accounts at the same bank.
4. Are all banks impacted by this? All banks who are members of the Federal Deposit Insurance Corporation (FDIC) are impacted. Cadence Bank, N.A. is a member of the FDIC.
5. Explain what the FDIC does. The FDIC is an independent agency of the United States government that protects the funds depositors place in member banks and saving associations. This insurance is backed by the full faith and credit of the U.S. government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
6. What does FDIC insurance cover? FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. It does not cover other financial products and services that banks may offer such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities. For a full listing, visit the FDIC website.
7. So how much will my account be insured for after December 31, 2012? The standard insurance amount of $250,000 per depositor, per insured bank, for each account ownership category will be available. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. (see www.fdic.gov/deposit/deposits)
8. What are those limits? Full information of FDIC insurance is available at www.fdic.gov/deposit/deposits, but briefly:
- Single Accounts owned by one person are insured for $250,000 per owner
- Joined Accounts owned by two or more persons are insured for $250,000 per co-owner
- Certain Retirement Accounts, including IRAs, are insured for $250,000 per owner
The FDIC also has a calculator to help you determine your deposit insurance coverage available at www.fdic.gov/edie.
9. How do I know my money is safe with Cadence? Cadence is a member of the FDIC and, as with all banks that are members of the FDIC, your deposits at our bank are guaranteed to the amounts indicated on the FDIC website.
10. Are there ways to gain more insurance? There may be. We welcome the opportunity to visit with you to determine how we may provide additional ways to manage your money and provide the safekeeping you expect.
11. Where can I go if I need more information? You can read more about FDIC insurance coverage online at www.fdic.gov/deposit/deposits. Or you can call toll-free at 1-877-ASK-FDIC (1-877-275-3342). Another option is to use the FDIC’s online Customer Assistance Form at www2.fdic.gov/starsmail.