City National Will Fully Insure Accounts Exceeding $250,000

To further reinforce its position as one of the nation’s strongest, most secure banks, City National has decided to extend through 2009 its participation in the FDIC program providing full deposit insurance for all funds in noninterest-bearing deposit transaction accounts exceeding $250,000.

Why is City National participating in this additional coverage?

• This coverage gives our clients added assurance in a very volatile time.
• It gives each of us another benefit to discuss with our clients.
• This coverage applies to both personal and business accounts.
• This is great news especially for business clients who previously had no option to increase coverage beyond the current standard limit of $250,000.

Which deposit accounts are eligible?

• The full amount of funds held in all noninterest-bearing transaction accounts.
• These are mainly payment-processing accounts, such as payroll accounts used by businesses.

What do clients need to do in order to make sure their deposits are covered by the full deposit insurance?

• Nothing. It happens automatically.

What is the history of this situation?
 

• On October 3, 2008, the President signed the Emergency Economic Stabilization Act of 2008.  This measure temporarily raises the FDIC’s standard maximum deposit insurance account coverage from $100,000 to $250,000 to December 31, 2009.

• Two weeks later, the FDIC announced an additional temporary program under which it fully insures all funds on deposit in noninterest-bearing transaction accounts. The government gave banks 30 days to opt out of this program. If a bank stays in the program, the coverage and the additional insurance assessment will continue until December 31, 2009. City National Bank has decided to stay in the program so all our clients’ noninterest-bearing account funds are fully insured now and will remain so through 2009.