FDIC’s Transaction Account Guarantee Program

Legacy State Bank is participating in the FDIC's Transaction Account Guarantee Program.

Under that program, through June 30, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

A "noninterest-bearing transaction account" is defined as a transaction account with respect to which interest is neither accrued nor paid and on which the insured depository institution does not reserve the right to require advance notice of an intended withdrawal.

However, for purposes of the the transaction account guarantee program, the FDIC is including in the definition of a noninterest-bearing transaction account:

• Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTA's) and functionally equivalent accounts; and
• Negotiable order of withdrawal accounts (NOW accounts) with interest rates no higher than 0.50 percent for which the insured depository institution at which the account is held has committed to maintain the interest rate at or below 0.50 percent.