Notice of changes in Temporary FDIC Insurance Coverage
for Transaction Accounts
Apple River State Bank and First Community Bank of
Galena, a branch of Apple River State Bank, is
participating in the FDIC’s Transaction Account
Guarantee Program. Under that program, 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
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, money-market
For more information about temporary FDIC insurance
coverage of transaction accounts, visit
What is the Transaction Account Guarantee (TAG) Program
October 14, 2008, the FDIC announced its new
Transaction Account Guarantee (TAG) Program as part
of the Temporary Liquidity Guarantee Program. The
TAG program guarantees full deposit insurance
coverage of non-interest bearing deposit transaction
accounts, regardless of the dollar amount. All
FDIC-insured institutions were automatically
enrolled for a 30-day period. We are pleased to
announce that we will continue our participation in
How does the Transaction Account
Guarantee Program affect my insurance coverage on other
types of accounts?
coverage on non-interest bearing deposit transaction
(checking) accounts is over and above the current
FDIC coverage of $250,000 per depositor.
If you have $50,000 in a non interest bearing
deposit transaction (checking) account and $250,000
in a certificate of deposit (CD), the FDIC will
insure the entire $300,000.
What are non interest bearing deposit transaction
Non-interest bearing deposit transaction accounts
are any demand deposit accounts, such as personal or
business checking accounts, that do not earn
interest. There are a couple of exceptions to the
“interest bearing/noninterest bearing” rule:
IOLTA accounts (Interest on Lawyers Trust Accounts).
These are accounts that ARE interest bearing that
are maintained by Lawyers for their clients, but the
interest is not given to the attorneys, but to the
State Bar Association. This money is then used to
provide legal services for low income individuals.
In this sense, the account is considered a
non-interest bearing account.
NOW accounts (Interest Checking Accounts) that
maintain an interest rate of no greater than 0.25%
will also be an exception to the rule and will be
completely covered by FDIC insurance.
Money Market Checking Accounts since they have are a
limited transactional account, fall under the
category of Savings Accounts. These accounts will be
insured like all other Savings accounts.
(external website, opens in a new window) to see
FDIC’s insurance video.
For more information on the TAG program, please