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 insurance coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules. 

The term "noninterest-bearing transaction account" includes traditional checking account or demand deposit accounts on which the insured depository institution pays no interest.  It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyer Trust Accounts (IOLTAs).

As of January 1, 2011, such accounts will no longer be eligible for unlimited protection, but instead will be insured under the general insurance rules up to the Standard Maximum Deposit Insurance Amount of $250,000.

For more information about temporary FDIC insurance coverage of transaction accounts, visit http://www.fdic.gov/