How will institutions be assessed on noninterest-bearing transaction accounts that have pass-through coverage?
Institutions will not be assessed on amounts that are otherwise insured. For example, if a taxes and insurance custodial account has $2 million in it but each actual owner has a balance that is less than $250,000, then the institution will not be assessed the 10 basis point annual surcharge on this account. Will the basis point surcharge for the non-interest bearing transaction accounts for amounts exceeding the temporary $250,000 limit be based on December 31, 2008 Call Report actual (spot) balances or average balances? The additional premiums associated with the Transaction Account Guarantee Program will be based upon new Call Report information: the amount and number of accounts meeting the definition prescribed by the Final Rule. These new line items are to be reported on a spot, quarter-end basis, even for those institutions whose quarterly assessment base is calculated using averages.
Institutions will not be assessed on amounts that are otherwise insured. For example, if a taxes and insurance custodial account has $2 million in it but each actual owner has a balance that is less than $250,000, then the institution will not be assessed the 10 basis point annual surcharge on this account.
Related Questions
- How does the guarantee on noninterest-bearing transaction deposit accounts affect a customers insurance coverage for other types of accounts?
- How will institutions be assessed on noninterest-bearing transaction accounts that have pass-through coverage?
- Are balances in non-interest bearing transaction accounts included in the overall $250,000 FDIC coverage amount?
