Member FDIC

Interest-Bearing Accounts: FDIC Insurance Coverage Permanently Increased to $250,000
A new law that took effect on July 21, 2010 permanently raised the Federal Deposit Insurance Corporation (FDIC) maximum deposit insurance amount to $250,000. That coverage limit applies per depositor, per insured depository institution for each account ownership category.


Noninterest-Bearing Accounts: Now Fully Insured!
The full balance of non-interest bearing checking accounts at California Bank & Trust are fully insured by the FDIC through December 31, 2012.  (Unless the period of unlimited insurances gets extended, balances in those accounts will become subject to the $250,000 insurance limit beginning on January 1, 2013.)
(Note however that IOLTA and NOW transaction accounts earning 0.25% interest or less that are currently insured for their full balance will revert to the $250,000 insurance limit beginning January 1, 2011.)


Special Rule for Sweep Investments – If clients have a non-interest bearing checking account that “sweeps” funds into another account, they should be aware that funds swept into an interest-bearing account, a non-transaction account or an overnight investment account, will not receive the unlimited FDIC insurance.  Funds swept into FDIC insured accounts will be subject to the $250,000 FDIC insurance limit; funds swept into accounts that are not FDIC insured will not have any insurance.