The FDIC has asked financial institutions to notify their customers in advance that the Transaction Account Guaranty (TAG) program will expire at year end. This program provides temporary unlimited deposit insurance for non-interest bearing transaction accounts which are used by many small businesses, municipalities, and nonprofits to meet payroll and operational expenses. As much as $1.4 trillion has been deposited in these accounts according to the Independent Community Bankers of America.
Read more here: Warning: TAG to Expire Soon
Find out more from the FDIC: FDIC’s Notice of Expiration
*UPDATE* TAG Extension Legislation Dies in Senate
A proposed bill that would keep the Transaction Account Guaranty (TAG) program in play for another two years was defeated in the Senate on December 13, 2012 practically guaranteeing that the program will expire as scheduled on Dec. 31.