|New FDIC insurance coverage limits
Effective January 1, 2013 funds in a noninterest-bearing transaction account,
including an IOLTA, will no longer receive unlimited deposit insurance coverage, but will be FDIC insured to the legal maximum of $250,000 for each ownership category.
The term “non interest-bearing transaction” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.