Sterling 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.

What deposit accounts are considered “non-interest-bearing transaction accounts?”

For purposes of the Transaction Account Guarantee Program, the following are considered non-interest- bearing transaction accounts:

• Traditional demand deposit checking accounts that allow for an unlimited number of deposits and withdrawals at any time;
• Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts; and
• Certain Negotiable Order of Withdrawal (NOW) accounts with interest rates no higher than .50 percent.

What deposit accounts are not considered “non-interest-bearing transaction accounts?”

Money market deposit accounts (MMDAs), savings accounts and time deposits are not considered to be  non-interest-bearing transaction accounts. In addition, the Sterling Relationship Account is not considered a non-interest-bearing transaction account.

Are sweep accounts covered?

In a sweep arrangement, funds are swept or transferred from a non-interest-bearing transaction account to another type of deposit or nondeposit account. As a general rule, the FDIC will treat the funds as being in the account to which the funds were transferred.   Please see a Sterling Banker for more detailed information on sweep account coverage.

Are all U.S. banks participating in the Transaction Account Guarantee Program?

No. Participation in the Transaction Account Guarantee Program is optional. Although Sterling Bank has elected to participate, other banks may elect not to participate.

How can I confirm an eligible insured depository institution’s participation in the program?

The FDIC will maintain and post on its website a list of eligible entities that opt out of the Transaction Account Guarantee Program. In addition, effective December 19, 2008, every insured depository institution that offers non-interest-bearing transaction accounts must post a notice in each branch and on its website clearly indicating whether or not the institution is participating in the program.

Who can I contact for more detailed information?

Should you have questions about the Transaction Account Guarantee Program or any other deposit insurance matter, please visit with any Sterling Banker. Additionally, information can be found on the FDIC’s website (www.fdic.gov/tlgp).