TAG Expiration Notice for NIBTA Holders
Temporary Unlimited Coverage for Noninterest-Bearing Transaction Accounts Set to Expire Today
Effective January 1, 2013, noninterest-bearing transaction accounts (NIBTAs) will no longer be insured by the Federal Deposit Insurance Corporation (FDIC) as a separate ownership category. The recent change in law prohibits temporary unlimited deposit insurance coverage for NIBTAs, including Interest on Lawyer Trust Accounts (IOLTAs).
When Section 343 of the Dodd-Frank Act expires on December 31 2012, the FDIC will no longer provide separate, unlimited deposit insurance coverage for NIBTAs at insured depository institutions (IDIs). Once the new law is in effect, all of a depositor's accounts at an IDI will be insured by the FDIC for a set amount of up to $250,000, for each deposit insurance ownership category. Reference the official FDIC Letter for additional details.
The Bank is encouraging all NIBTA depositors to make note of these changes in FDIC insurance coverage and consider the impact of any change in coverage. Please contact your Relationship Manager with any questions.
For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit www.fdic.gov.
A Newsletter for Our Clients, Our Shareholders and The Community
We hope you had a wonderful first quarter and are enjoying the spring air. This quarterly newsletter brings you important information on the Small Business Lending Fund, Helpful Tips for Data Privacy, an interview with our valued client The Original Fish Company, and more! Please enjoy and thank you for your continued support!
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