The Federal Deposit Insurance Corporation, or FDIC, is an independent agency of the United States government that was established by Congress with a mission to insure bank deposits. As a member of the FDIC, Eastern Bank protects its consumer and business deposits against loss as described below.
The FDIC is backed by the full faith and credit of the U.S. Treasury, and deposits are also protected by the financial strength and stability of Eastern Bank, which has been serving the needs of individuals and businesses since 1818.
STANDARD FDIC INSURANCE
Standard FDIC deposit insurance has been permanently increased from $100,000 to $250,000.
EXPIRATION OF TEMPORARY UNLIMITED FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS
Effective January 1, 2013, funds in a noninterest-bearing transaction account including Interest on Lawyer Trust Accounts (IOLTAs) will no longer receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). All depositor accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount of $250,000 for each deposit insurance ownership category.
Coverage Provided by Standard FDIC Insurance
Standard FDIC insurance covers interest-bearing deposit accounts up to $250,000. Interest-bearing deposit accounts include checking, NOW, savings and money market deposit accounts, and time deposits such as certificates of deposit (CDs). In addition, retirement deposit accounts, including IRAs and SEPs are separately insured up to $250,000 per owner.
What is Not Insured by the FDIC
The FDIC does not insure money invested in non-deposit investment products, such as stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments were bought from an insured bank. The FDIC does not insure U.S. Treasury bills, bonds or notes.