FDIC Insurance

Explanation of the Recently Increased
FDIC Insurance Coverage

The Emergency Economic Stabilization Act of 2008 increased the basic FDIC insurance coverage limits on your money in insured financial institutions to $250,000, fixed through December 31, 2013.

The temporary increased coverage not only applies to accounts held by individuals, but also to accounts held by corporations, partnerships, limited liability companies and municipalities. There is no cost to the public for the FDIC insurance coverage as it is paid for through assessments on insured financial institutions. After December 31, 2013, the basic FDIC insurance coverage limit will return to $100,000 except for certain retirement accounts, like IRAs, which will continue to receive FDIC insurance coverage up to $250,000.

IMPORTANT INFORMATION
Regarding FDIC Deposit Insurance Coverage

Northwestern Bank is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2010, all non interest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

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What does FDIC insurance mean to you, our customer?

The FDIC protects depositors against the loss of their deposits if an FDIC insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

FDIC insurance covers all types of deposits received from you at an insured bank, including deposits in checking, NOW and savings accounts, money market deposit accounts, and certificates of deposit (CDs). Safe deposit boxes, and their contents are not insured.

FDIC deposit insurance covers the balance in your account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing.

For more information on FDIC insurance protection of your deposits,
visit the FDIC website here.