Compliance Notice | FDIC/NCUA Expands Coverage


Regulation summary:

On October 3, Congress passed the Emergency Economic Stabilization Act of 2008. The legislation temporarily increases deposit and share insurance coverage limits from $100,000 to $250,000 through December 31, 2009.

In addition to the increased coverage, both the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) have simplified the rules for determining the deposit and share insurance coverage available on revocable trust accounts.

Date effective:

Immediately

Action steps recommended:

These changes are good news for consumers, who are looking for ways to keep their money safe in these tough economic times. These changes can also be good for financial institutions seeking to retain and increase deposits/share savings. So, it’s important to get the word out.

1. Understand the changes—read Deposit and Share Insurance Changes: Getting the Message Out, recently released on ComplianceHeadquarters.com.

2. Inform your account owners—ease concerns and restore confidence with our new FDIC/NCUA brochures and inserts. Request more information.

FDIC and NCUA Brochures—clearly explain the changes and federal policies governing deposit or share insurance. They also provide information and examples about various account ownerships and how those ownerships can be used to expand deposit or share insurance coverage at a single financial institution.

FDIC and NCUA Inserts—briefly summarize the changes in deposit or share insurance coverage. They help account owners understand that the temporary increase in insurance makes their deposits even safer.

3. Review your account opening disclosures and other brochures—update the advertising statement that you use. If you use the NCUA logo as the advertising statement, you may want to update your affected disclosures or brochures. If you use the FDIC logo, you may want to add the FDIC’s recommended text. Other non-logo options are also available that satisfy the advertising requirements.