Earlier this year, Chevy Chase Bank was acquired by Capital One Financial Corporation, the parent company of Capital One, N.A. On July 30, 2009, Chevy Chase Bank will be merged with and into Capital One Bank. Provided below is information to help you understand the effect of this legal entity change on the Federal Deposit Insurance Corporation's ("FDIC") deposit insurance coverage on your deposits.
How will the merger of Chevy Chase Bank with Capital One, N.A. affect my deposit insurance coverage if I have deposits at both institutions?
Whenever two insured depository institutions merge, their deposits continue to be separately insured for a period of six (6) months from the date of the merger. This means that if you have non-time deposit accounts, such as checking, savings, or money market accounts, at both Capital One, N.A. ("Capital One Bank") and
Chevy Chase Bank that were opened before the merger, the deposits in these accounts will continue to be separately insured up to the FDIC insurance limits for each ownership category until January 30, 2010.
If you have time deposit accounts, such as Certificates of Deposit, the deposits in these accounts will continue to be separately insured until the earliest maturity date after the end of the six (6) month period. Please note that if your account matures during the period from July 30, 2009 through January 30, 2010 and is renewed for the same term and in the same dollar amount (either with or without accrued interest), your deposit will continue to be separately insured until the first maturity date after the six month period. If, however, your account is renewed on any other basis (i.e. different dollar amount or different terms than the original deposit), or is not renewed and becomes a non-time deposit account, your deposit will be separately insured only until January 30, 2010.
What is the current amount of FDIC insurance coverage?
The FDIC has temporarily increased the standard FDIC deposit insurance limits from $100,000 to $250,000 per depositor through December 31, 2013. Additionally, both Capital One Bank and Chevy Chase Bank are participating in the Temporary Liquidity Guarantee Program. Under this program, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account through December 31, 2009.
Will there be any change to FDIC insurance coverage on deposits that I make on or after July 30, 2009?
Deposits that are made on or after July 30, 2009 will be combined with all other deposits that you made with Capital One Bank prior to July 30, 2009 for purposes of calculating applicable FDIC insurance coverage.
Where can I get more information about FDIC insurance coverage?
The FDIC has developed a tool called EDIE the Estimator to calculate whether you are within the FDIC coverage limits at any FDIC-insured bank. This calculator is easy to use and is available at the FDIC Web site. Before you begin, identify all of the deposit accounts that you have at Chevy Chase Bank and Capital One Bank. Then just follow the simple steps on EDIE the Estimator to calculate your coverage.
If you need assistance, stop by your local branch or call us at 301-987-BANK (2265). Business customers, please call 1-877-987-4BIZ (4249). A Chevy Chase Bank representative will be happy to help.
For additional information regarding FDIC insurance coverage, we encourage you to visit the FDIC Web site at www.fdic.gov or call 1-877-ASK-FDIC (1-877-275-3342).