FDIC Board of Directors Approves Extension of Transaction Account Guarantee Program

From the FDIC press release

[The FDIC Board] approved an interim rule to extend the Transaction Account Guarantee (TAG) program to December 31, 2010. Last year the program was extended to June 30, 2010. Under the TAG program, customers of participating insured depository institutions are provided full coverage on transaction accounts.

Another change will affect interest rates on these accounts:

[FDIC Board voted] to reduce the maximum rate that can be paid for qualifying NOW accounts to 0.25 percent from 0.50 percent.