FDIC Insurance

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.

On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to at least $250,000 per depositor. The expiration date for this legislation has since been extended by President Obama, and will provide the increased coverage until December 31, 2013.

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 through the end of 2013. Also, you are eligible for additional insurance if your accounts are held in different categories of ownership.

The 100% Transaction Account Guarantee Program
Sovereign is participating in the FDIC's Transaction Account Guarantee Program (TAGP), which temporarily provides full deposit insurance coverage for many Sovereign accounts regardless of dollar amount. Sovereign is participating in the TAGP through December 31, 2009.

The FDIC recently offered banks participating in the TAGP the opportunity to extend full deposit insurance coverage through June 30, 2010. Because of Sovereign Bank's stable financial footing, as well as the strength and stability of the Santander organization, Sovereign has decided to opt-out of the TAGP extension through June of 2010. As a result, after December 31, 2009, funds held in these Sovereign accounts and all other Sovereign deposit accounts will be insured up to $250,000 per depositor under the FDIC's general deposit insurance rules.

Standard FDIC Maximum Deposit Insurance Coverage Limits Through December 31, 2013^*

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).