Farmers and Merchants Bank is participating in the FDIC’s Transaction Account Guarantee Program.  Under that program, through December 31, 2009, all noninterest-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.
Under this program, the definition of non-interest bearing transaction accounts includes low interest NOW accounts (defined as NOW accounts earning an interest rate no higher than .50%) and Interest On Lawyers Trust Accounts (IOLTAs).  If a NOW account earns interest of .51% or above, it is not covered under the Transaction Account Guarantee Program.