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FDIC Transaction Account Guarantee Program


Notice of Expiration: Temporary Unlimited Coverage for Noninterest-Bearing Transaction Accounts

This notice is being provided to all Kenney Bank and Trust NIBTA account holders prior to the expiration of the temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs).

Absent a change in law, effective January 1, 2013, noninterest-bearing transaction accounts no longer will be insured by the FDIC as a separate ownership category. Thereafter, NIBTA deposits at an IDI will be aggregated with any other deposits held by the same person in the same ownership category, with the total insured up to the standard maximum deposit insurance amount, which currently is $250,000.

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category..

Please contact us with any questions you may have regarding this change.

For more information about temporary FDIC insurance coverage of transaction accounts, visit