News and Promotions

NEW BASIC FDIC DEPOSIT INSURANCE COVERAGE LIMITS

On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.

Single Accounts: $250,000 per owner

Joint Accounts: $250,000 per co-owner

IRAs & certain other retirement accounts: $250,000 per owner

Trust Accounts: $250,000 per owner per beneficiary subject to specific limitations and requirements

Corporate Accounts: $250,000 total

Stop in to visit us and find out how you can increase your coverage by using multiple accounts.

Frontier Bank is now 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.

For complete information regarding the FDIC insurance coverage increases, visit www.fdic.gov or call toll free 1-877-ASK-FDIC (1-877-275-3342)

To calculate insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator visit www2.fdic.gov/edie.

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2009 FIRST TIME HOME BUYER TAX CREDIT

As part of its plan to stimulate the US housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8000 to first-time home buyers.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer's tax credit is determined by two factors:

The price of the home - the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income - single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 - may receive the maximum tax credit.

If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income - over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.