Heritage Commerce, the parent company of Heritage Bank of Commerce, said that they will continue to participate in the Federal Deposit Insurance Coverage (FDIC)'s Transaction Account Guarantee (TAG) program.
Under this program, through December 31, 2010, transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the TAG Program is in addition to and separate from the $250,000 coverage available under the FDIC’s general deposit insurance rules.
The FDIC recently extended the TAG program through at least December 31, 2010 and reduced the maximum interest rate limit for NOW accounts guaranteed under the program to 0.25% effective July 1, 2010.
The final rule also gives the FDIC board of directors discretion to extend the TAG Program up to but no longer than December 31, 2011, without additional rule making if they determine that economic conditions warrant such an extension.
Ray Parker, executive vice president of Heritage Bank of Commerce’s banking division, said: “The TAG program is a significant benefit to our clients, guaranteeing full deposit insurance coverage of all regular checking accounts, regardless of the dollar amount. The transaction account guarantee also applies to all personal and business NOW accounts earning 0.25% or less, providing our customers with the peace of mind that their transaction accounts are fully insured even beyond the safety and soundness of Heritage Bank.”