Effective October 3, 2008, the basic limit on federal deposit insurance coverage
was temporarily increased from $100,000 to $250,000 per depositor through December
31, 2009. On May 21, 2009, the expiration date was extended through December 31,
2013.
Insurance coverage for certain retirement accounts, which include all IRA deposit
accounts, was increased permanently to $250,000 per depositor in 2006.
On October 14, 2008, the FDIC announced its temporary Transaction Account Guarantee
Program, providing depositors with unlimited coverage for non interest bearing transaction
accounts if their bank is a participant in the FDIC's Temporary Liquidity Guarantee
Program. Non interest bearing checking accounts include Demand Deposit Accounts
(DDAs) and any transaction account that has unlimited withdrawals and that cannot
earn interest. Also included are low-interest NOW accounts that cannot earn more
than 0.5% interest. Interest-bearing accounts include NOW accounts that can earn
more than 0.5% interest, other interest-bearing checking accounts, Money Market
Accounts (MMDAs), savings accounts, and Certificates of Deposit (CDs). This program
is scheduled to end on June 30, 2010.
TEXAS SECURITY BANK is participating in the FDIC's Transaction Account Guarantee
Program. Under that program, through June 30, 2010, all non interest-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. NOW accounts are excluded from this program at Texas Security Bank.