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Transaction Account Guarantee Program Update
Beginning January 1, 2010, U.S. Bank will no longer participate in the FDIC's Transaction Account Guarantee Program. Thus, after December 31, 2009, funds held in non-interest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000 under the FDIC's general deposit insurance rules.1

FDIC Deposit Insurance Coverage
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.

To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank. The chart shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

Information on FDIC Insurance of Merged Banks
When two or more insured banks merge, the deposits from the assumed bank continue to be insured separately for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the assumed bank are separately insured until the earliest maturity date after the end of the six-month grace period. CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period. If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Through December 31, 2009, the following accounts are fully guaranteed under the Transaction Account Guarantee Program:

• Non-Interest Checking Accounts - such as business checking accounts that allow for an unlimited number of deposits and withdrawals at any time; provided interest is neither accrued nor paid.
• Certain Low Interest Transaction Accounts - such as personal checking accounts and checking accounts of sole proprietorships and non-profits with an interest rate no more than 0.50%, and Interest on Lawyer Trust Accounts, regardless of interest rates. Savings and money market accounts are not included in this category.

Certain Transaction Accounts have the basic FDIC deposit insurance but are not fully guaranteed.

• Private Client Platinum Checking Accounts
• Specific transaction accounts where the interest rate is tied to an index rate (Fed Funds, Treasury Rates) outside the control of U.S. Bank
• U.S. Bank Health Savings Accounts
• Specific transaction accounts where there is an agreement, either orally or in writing, between the account holder and U.S. Bank where there is the potential to pay an interest rate greater than 0.50%. Please contact your account officer if you would like clarification of any account in this category.

Sweep Arrangements Under the Transaction Account Guarantee Program
Funds transferred from a fully guaranteed non-interest Business Checking Account to an interest-bearing Business Savings Account under a Business Savings Sweep Arrangement have the basic FDIC deposit insurance and are not fully guaranteed.

As referenced above, on January 1, 2010, the temporary expanded Transaction Account Guarantee Program coverage will no longer apply for these accounts. These accounts will be insured up to $250,000 under the FDIC's general deposit insurance rules.1

For more detailed information from the FDIC about deposit insurance:

• visit myFDICinsurance.gov
• call the FDIC at 877-ASK-FDIC (877-275-3342)
• call 800-925-4618 (for hearing impaired)

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