FDIC Insurance

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS
All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the U.S. Congress in 1933 to help maintain public confidence in the nation's financial system. Sovereign has been FDIC-insured since March 10, 1938.

FDIC deposit insurance is backed by the full faith and credit of the United States government. There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed by President Barack Obama on July 21, 2010, and made permanent the current standard maximum deposit insurance amount (SMDIA) of $250,000. The FDIC coverage limit applies per depositor, per insured depository institution, for each account ownership category.

Even though Sovereign is now part of the Santander Group, it remains an FDIC-insured federal savings bank. As such, your deposits are insured by the FDIC up to the maximum limits allowed by law, which is at least $250,000. Also, you are eligible for additional insurance if your accounts are held in different categories of ownership.

Standard FDIC Maximum Deposit Insurance Coverage Limits^*

Single Accounts (owned by one person)	$250,000 per owner**
Joint Accounts (two or more persons)	$250,000 per co-owner**
IRAs and certain other retirement accounts	$250,000 per owner
Trust Accounts	$250,000 per owner beneficiary subject to specific limitations and requirements**

What is not insured by the FDIC?
Sovereign also offers a range of investment accounts that do not qualify as deposits, and are not covered by FDIC insurance. Examples of non-deposit investment products not covered by FDIC deposit insurance include: FDIC Resources If you have questions about FDIC coverage limits and requirements, please visit www.myFDICinsurance.gov or call toll-free 1-877-ASK-FDIC (1-877-275-3342).