No one has ever lost a penny in FDIC-insured deposits. FDIC insurance now covers each depositor up to $250,000.
Also, First Federal Bank is participating in the Transaction Account Guarantee Program. Under that program, your noninterest-bearing transaction accounts* with First Federal Bank have unlimited FDIC deposit insurance. This insurance is in addition to the FDIC’s normal deposit insurance coverage of $250,000. Unless extended by the FDIC, this additional insurance is available only through December 31, 2010. At that time, FDIC deposit insurance coverage will revert to $250,000.
*Noninterest-bearing transaction accounts include all of First Federal Bank’s NOW accounts, except accounts paying higher than 0.50%. Effective July 1, 2010, the 0.50% rate of interest will be reduced to 0.25%.
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