Transaction Account Guarantee Program ( TAG ) Bank Opt-out List (as of 5/6/09)
This will provide you with a list of Banks that have chosen not to participate in the TAG
This is the list that opted out before the July 21, 2010 extension. Double check with your Banking Institution to insure they now (currently) participate and offer TAG accounts
(non interest bearing Checking accounts).
What is the FDIC Transaction Account Guarantee (TAG) Program?
Question: I recently received a letter from my bank stating that it was discontinuing it's coverage under the FDIC Transaction Account Guarantee Program. What exactly does this program entail,
and will my accounts still be insured once my bank has opted-out of this coverage?
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Answer: The Transaction Account Guarantee (TAG) program was created in response to the financial crisis to help settle the nerves of depositors with large bank accounts. It allows participating banks and financial institutions that have non-interest bearing accounts, like some
checking accounts, to offer unlimited FDIC coverage, instead of the regular $250,000 coverage per depositor. The additional TAG insurance doesn’t apply to interest-bearing checking accounts, savings accounts, money markets, or CDs.
The TAG program has been extended through the end of 2010, but participating institutions had a one-time opportunity to opt out of it by April 3, 2010 and let their coverage expire on July 1, 2010. Over 1,000 institutions decided to get out and save money on the rising expense of the program. If your bank discontinued TAG insurance and you have an account that doesn’t earn interest, then your coverage has simply been reversed back to the FDIC’s general deposit insurance rules. For most people, that isn’t a big deal, because if they had over $250,000 in cash it probably wouldn’t be sitting idle in a non-interest bearing account!
Changes to FDIC Deposit Insurance
On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act. One of its provisions is a permanent increase in the standard FDIC (Federal Deposit Insurance Corporation) insurance coverage limit to $250,000. The limit used to be $100,000 but was temporarily raised to $250,000 until December 31, 2013. FDIC insurance applies to each depositor at each insured institution for each category of account ownership
(such as individual, joint, trust, or retirement). If you have questions about your FDIC coverage visit fdic.gov. There’s a tool on the Web site called the Electronic Deposit Insurance Estimator (EDIE) that helps you make sure all your deposits are fully insured.