Are interest-bearing accounts that offer zero interest covered under the Temporary Liquidity Guarantee Program?
No, in general, only noninterest-bearing transaction accounts are covered. (NOW accounts with interest rates of 0.50 percent or less and IOLTAs are also covered under the Transaction Account Guarantee Program.) Whether an account is noninterest-bearing will be determined by the account agreement regardless of the actual interest paid. However, the FDIC will treat funds swept from a noninterest bearing transaction account into a noninterest-bearing savings account as being in the noninterest-bearing transaction account for purposes of the guarantee.
No, in general, only noninterest-bearing transaction accounts are covered. (NOW accounts with interest rates of 0.50 percent or less through June 30, 2010 and 0.25 percent or less after June 30, 2010 and IOLTAs are also covered under the Transaction Account Guarantee Program.) Whether an account is noninterest-bearing will be determined by the account agreement regardless of the actual interest paid. However, the FDIC will treat funds swept from a noninterest bearing transaction account into a noninterest-bearing savings account as being in the noninterest-bearing transaction account for purposes of the guarantee.
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- Are interest-bearing accounts that offer zero interest covered under the Temporary Liquidity Guarantee Program?
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