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 legislation provides that increased coverage will expire on December 31, 2009.

Sovereign is and will remain, even after the acquisition by Santander, an FDIC-insured bank. As such, your deposits are FDIC insured up to the maximum limits allowed by law, which is at least $250,000 ($250,000 for IRAs) through the end of 2009. You may also be eligible for additional insurance if your accounts are held in different categories of ownership.

Standard FDIC Maximum Deposit Insurance Coverage Limits Through December 31, 2009^*

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**

The Transaction Account Guarantee Program
Sovereign is also participating in a program that will temporarily provide full deposit insurance coverage for business and consumer non-interest bearing checking accounts in FDIC-insured institutions regardless of dollar amount. This means that all checking accounts that do not earn interest are 100% insured by the FDIC. Coverage through the FDIC Transaction Account Guarantee Program is available through the end of 2009, and is in addition to the FDIC Standard Maximum Deposit Insurance Amount coverage noted above for interest-bearing accounts.

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).