FDIC Insurance Coverage

On October 3, 2008, FDIC Deposit Insurance increased from $100,000 to $250,000 per depositor.

As you know, FDIC provides separate insurance coverage for deposits held in different ownership categories including, but not limited to single accounts, joint accounts, IRAs and trust accounts.

Basic FDIC Deposit Insurance Coverage Limits*

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

Washington Trust is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through June 30, 2010, 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.

*These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2013.

For more information, visit the FDIC website.

Looking for a way to keep large deposits safe? Ask us about CDARS®.

With CDARS, you can receive up to $50 million in FDIC protection through Washington Trust. There are few guarantees in life - FDIC insurance is one of them. CDARS can be a valuable cash management or longer-term investment tool for you or your business.

Why CDARS?

It's one-stop shopping. With help from CDARS, you can access:

• Safety - Your money can receive up to $50 million in FDIC insurance coverage.
• Convenience - You work directly with us. You earn one interest rate and receive one regular statement. Individual investors receive one year-end tax form.
• Community Investment - The full value of your money can support lending opportunities in your local community.
• CD-Level Rates - Your money earns CD-level returns which may compare favorably with other investment alternatives, including Treasuries, corporate sweep accounts, and money market funds.

How does CDARS work?

How does it work? Washington Trust is a member of a unique network called CDARS. When you deposit a large amount with us, we place your funds into CDs issued by other Network Members. (This occurs in increments of less than $100,000 so that both principal and interest are eligible for complete FDIC protection.) Other banks in the network do the same thing with their customers' funds.

With help from a sophisticated matching system, network banks exchange deposits on a dollar-for-dollar basis. This allows Washington Trust to provide you with access up to $50 million in FDIC insurance with the convenience of one-stop banking. And as an added benefit, we can make the full amount of your deposit available for lending opportunities that build a stronger local community.

What else should I know?

Now, you no longer have to spend time managing multiple bank relationships, administering various interest rates, organizing interest disbursements from various sources, or manually consolidating monthly statements. This reduces your administrative burden, especially during tax and financial reporting seasons.

And with CDARS, you can eliminate the need to monitor changing collateral values - another time saving convenience.

Of course, your confidential account information remains protected.

Ask us about how CDARS can work for you the next time you visit one of our branches, or click here for more information.

Funds may be submitted for placement only after a depositor enters into the CDARS Deposit Placement Agreement with Washington Trust. The agreement contains important information and conditions regarding the placement of funds by us.

This benefit applies to some, but not all types of CDARS transactions. Let us know if this benefit is important to you, so that we can explain the relevant terms and conditions in more detail.

CDARS is a registered service mark of Promontory Interfinancial Network, LLC.