ProGrowth News

ATTENTION: Money Market, Statement & IRA Savings Accountholders

NOTICE OF CHANGE

Effective February 1, 2013 the following changes will be implemented:

REMINDER: Regulation D limits certain types of transactions you can make from these types of accounts to a maximum combined total of six (6). The types of transactions limited include withdrawals or transfers to another account of yours or to a third party by means of a preauthorized or automatic transfer, telephone, including fax, the bank’s internet banking service, check, draft, check card (if applicable) or similar order.

Notice of Expiration of the Temporary Full FDIC Insurance Coverage for Non-Interest Bearing Transaction Accounts
Tuesday, January 1, 2013

Effective January 1, 2013, federal laws have changed so that funds deposited in a non-interest bearing transaction account (including an Interest on Lawyer Trust Account, or “IOLTA” or “IOLA”) will no longer receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (the “FDIC”). Your deposit account(s) at ProGrowth Bank, including all non-interest bearing transaction accounts, will continue to be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.

Please contact us if you have any questions about these government-mandated changes for all FDIC-insured financial institutions. You can also visit us at our locations in Nicollet, Mankato, or Gaylord to review your deposit insurance coverage for each of your accounts. You can also contact us by phone at 888.244.3490 If you send us an email, please remember to protect yourself by not disclosing any personal information, such as account numbers, date of birth, tax identification numbers, etc. We’re happy to call you back with an answer to your question(s).

Finally, if you are interested in learning more about the FDIC insurance coverage of non-interest bearing transaction accounts, visit http://www.fdic.gov/deposit/deposits/unlimited/expiration.html.

FDIC Deposit Insurance Coverage Increased  

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC insured funds.

FDIC insurance covers all deposit accounts at insured banks and savings associations, including checking, NOW, savings accounts, money market deposit accounts and certificates of deposit (CDs) up to the insurance limit. The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if you purchased these products from an insured bank or savings association.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.

To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts.

Basic FDIC Deposit Insurance Coverage Limits

These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met. 

If you have questions about FDIC coverage limits and requirements, please visit www.myFDICinsurance.gov, call toll-free 1-877-ASK-FDIC, or ask a representative at your bank.

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