Important Changes to Federal Deposit Insurance
On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.
| HomeStreet Bank is also a participant in the FDIC’s Transaction Account Guarantee Program. Under this program, through December 31, 2009, all noninterest-bearing transaction accounts, IOLTAs and interest bearing transaction accounts earning 50 basis points or less are fully guaranteed by the FDIC for the entire amount regardless of account balances. Coverage under the Transaction Account Guarantee program is in addition to and separate from the coverage provided under the FDIC’s general deposit insurance rules. |
Providing our valued customers with the assurance that their money is always safe and secure at HomeStreet Bank is very important to us. Our participation in the Transaction Account Guarantee program provides coverage for the following HomeStreet accounts:
| Personal Accounts | Business Accounts |
| Bank on Seattle Checking | Business Advantage |
| E-Checking | Business Analyzed |
| Minimum Balance Checking | Business Basics |
| Plus Checking | Business Essentials |
| Totally Free Checking | Community Partnership |
| VIP Checking | IOLTA |
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For more information on FDIC insurance, visit http://www.fdic.gov/deposit/deposits/changes.html
Your FDIC Questions Answered
What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) is a federal agency created in 1933 to insure deposits in banks and thrift institutions as well as actively manage the deposit insurance funds.
What is covered by the FDIC?
Savings, checking and other deposit accounts, when combined, are now insured to $250,000 per depositor in each FDIC-insured bank or thrift. In addition, individual depositors may qualify for more than $250,000 of coverage at one bank if they hold deposit accounts in different categories of ownership, such as single, joint accounts or revocable trust accounts. Also, the FDIC generally provides separate coverage for retirement accounts, such as individual retirement accounts (IRAs) and Keoghs, insured up to $250,000. Our HomeStreet Bank branch staff can work with you to review your accounts in order to ensure you are maximizing your coverage.
Are deposits at HomeStreet Bank covered by the FDIC?
Absolutely, to the full extent of FDIC coverage. HomeStreet Bank is a member of the FDIC.
Are CD accounts covered?
Yes, CD accounts are covered up to the $250,000 account limit per depositor, and can be higher depending on how the account ownership is structured. HomeStreet Bank also participates in the CDARS® program (Certificate of Deposit Account Registry Service). Through this program, Certificates of Deposit can be insured by the FDIC up to $50 million. HomeStreet’s bank branch employees are well trained to help customers maximize their FDIC insurance coverage. Please stop by a HomeStreet Bank branch, talk with one of our staff and review your accounts to ensure you are maximizing your coverage.
Are Money Market accounts covered?
All deposit account types, including Money Market deposit accounts, issued by a bank are covered by the FDIC up to $250,000 of total deposits by an individual depositor.
How can I be sure my accounts are adequately covered by the FDIC?
The best way is to stop by a HomeStreet Bank branch, sit down with one of our branch staff and review your accounts to ensure you are maximizing your coverage. Also, the FDIC Web site features an Electronic Deposit Insurance Estimator that can help you determine if you have adequate deposit insurance for your accounts.
How is the FDIC funded?
The FDIC is fully industry-funded. Member banks and thrift institutions pay premiums for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. Currently, the FDIC insures more than $6.4 trillion of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country.
Does the FDIC really help individual depositors?
Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds. That’s a very good track record and we believe the FDIC is a truly vital institution.
Does HomeStreet Bank support the increase in FDIC coverage?
Yes, absolutely. We feel that the increase in the limits of FDIC coverage is in the best interests of our customers.
How can I maximize my FDIC coverage by naming different beneficiaries on my accounts?
The new FDIC guidelines for revocable trusts (payable-on-death accounts or living trust accounts) allow an account holder to name virtually anyone a beneficiary. Previously the beneficiary was required to be "qualified," defined as the owner's parent, brother, sister, spouse, child, or grandchild.
Is the FDIC in danger of running out of money?
No. The FDIC insurance fund's current balance is over $45 billion. This number is not static. The fund's balance is based on increases from member premiums and the cost of protecting depositors. Additionally, the FDIC has a longstanding line of credit with the U.S. Treasury and can borrow capital as needed. Throughout its history, the FDIC has only had to use this line of credit once, and the funds were repaid with interest in less than two years.
Does the increase in FDIC insurance also apply to businesses?
Yes. Depending on how a business is incorporated, the FDIC rolls up various account balances to the revised maximum coverage of $250,000 differently. Please stop by a HomeStreet Bank branch and talk with one of our branch staff to review coverage on your business account(s).
Is the increase in FDIC limits permanent?
No, Congress has approved this change to be in effect through 2009. It is very likely that Congress will address a permanent change in FDIC limits before the end of 2009.
If you have more questions about your accounts at HomeStreet Bank, please visit one of our branches or call us at 800-719-8080. We will be happy to answer all of your questions.
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