Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts
By Federal Law, as of 1/1/2013, Funds in a "noninterest-bearing transaction account", including an IOLA, will no longer recieve unlimited deposit insurance coverage but will be FDIC-insured to the legal maximum of $250,000 for each ownership category.
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, and money market deposit accounts.
For more information, please visit http://www.fdic.gov/deposit/deposits/unlimited/expiration.html.