Dedicated to Deposits: Deals, Data, and Discussion

Unlimited FDIC Coverage for Citibank Checking Accounts

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Citibank
In yesterday's post on Citigroup's Crisis a reader mentioned receiving the following email from Citibank. It informed him that all of his non-interest and interest bearing checking account balances are fully FDIC insured. Here are excerpts from the email:
Good news! Citibank is participating in the FDIC's Temporary Liquidity Guarantee Program. Through December 31, 2009, all of your non-interest and interest bearing checking deposit account balances are fully guaranteed by the FDIC for the entire amount in your account. *

And as a reminder, in October the FDIC increased the amount of insurance on eligible savings accounts -- such as savings, market rate, money market accounts, club and holiday accounts, and certificates of deposits -- from $100,000 to $250,000 through December 31, 2009.

* Coverage under the Temporary Liquidity Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

I reported on the coverage change of non-interest checking accounts in October. I did not realize that some interest bearing accounts also qualify. The FDIC's Temporary Liquidity Guarantee Program FAQ has the latest details. Under Coverage of Deposits, the FDIC expanded the definition of a noninterest-bearing transaction accounts to "Negotiable order of withdrawal accounts (NOW accounts) with interest rates no higher than 0.50 percent for which the insured depository institution at which the account is held has committed to maintain the interest rate at or below 0.50 percent." So that's one advantage of Citibank offering low rates on its checking accounts.

  Tags: Citibank, checking account

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