UPDATE 1-FDIC extends banks' opt-out date for guarantee plan

(Adds details of FDIC program)

WASHINGTON, Nov 3 (Reuters) - U.S. banking regulators on Monday extended the deadline for banks to opt out of its broadly expanded guarantee program for transaction deposits and new debt to Dec. 5 from Nov. 12.

The Federal Deposit Insurance Corp said it changed the deadline to give banks more time to decide whether they want to continue participating and start paying fees in exchange for the additional insurance.

All banks are currently covered under the temporary liquidity program, which went into effect earlier this month, but banks will start having additional assessments if they want to continue in the program after the opt-out deadline.

The program's guarantees provide coverage for a pool of about $1.4 trillion in senior unsecured debt and about $400 billion to $500 billion in transaction deposit accounts, which businesses typically use to meet payroll and pay vendors.

The FDIC guarantees are part of a package of actions the U.S. Treasury Department unveiled on Oct. 14 in which it also detailed its plan to inject $250 billion of capital into U.S. banks.

The new FDIC guarantee for deposits, which was effective immediately, applies to non-interest-bearing transaction deposit accounts and expires at the end of 2009.

The FDIC's guarantee for debt applies to senior unsecured debt issued between Oct. 14, 2008 and June 30, 2009. The guarantee on that debt will last for three years.

All FDIC-insured institutions will be covered until Dec. 5, after which they can opt out of the program. Banks that stay in will pay higher premiums into the FDIC insurance fund for the added protection. (Reporting by Karey Wutkowski, editing by Leslie Gevirtz and Andre Grenon)