Hawaiçi’s two biggest banks will not insure checking accounts for more than the $250,000 starting in January, joining the nation’s largest lenders in opting out of the federal government’s extra checking insurance program.
Checking and savings accounts at First Hawaiian Bank and Bank of Hawaii Corp. will continue to be insured for up to $250,000.

But both banks have recently decided to opt out of the Federal Deposit Insurance Corp.’s Transaction Account Guarantee Program. The program, created to boost public confidence in the banking system hard hit by last year’s global economic collapse, provided unlimited coverage for non-interest bearing checking accounts.
First Hawaiian and Bank of Hawaii joins the nation’s largest banks such as Citigroup Inc., JP Morgan and Wells Fargo & Co. who have exited the FDIC program, according to Bloomberg News.