City National Fully Insures Certain Accounts Exceeding $250,000

To further reinforce its position as one of the nation’s strongest, most secure banks, City National has extended through June 2010 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 even more assurance in a very volatile time.
• 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.
• The full amount of funds held in certain qualified interest-bearing checking (NOW) accounts where the interest rate cannot exceed 0.50%.
• The full amount of funds held in IOLTA/IOLA (Interest on Lawyer Trust Accounts).

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

• Nothing. City National did it automatically for all qualified accounts.

What is the history of this situation?
 

• On October 3, 2008, in response to the deteriorating economic situation, the President signed the Emergency Economic Stabilization Act of 2008. This measure, which has now been extended to December 31, 2013, temporarily raises the FDIC’s standard maximum deposit insurance account coverage from $100,000 to $250,000.

• 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. The coverage and the additional insurance assessment now continue until June 30, 2010, for banks that stayed in the program. City National Bank stayed in the program, so all our clients’ noninterest-bearing account funds are fully insured now and will remain so through June 30, 2010

• In August 2009, the FDIC announced an extension of the Transaction Account Guarantee (TAG) Program through June 30, 2010, for financial institutions that chose to continue participating. City National has decided to continue its participation in the TAG program.