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Wednesday, August 20, 2008 Bankers suggest tips to increase FDIC insurance coverageThe Independent Community Bankers of America and Socorro's First State Bank want consumers to take full advantage of Federal Deposit Insurance Corporation insurance and offers the following tips to help depositors increase the amount of money that FDIC insurance will safely cover at a single community bank. "First State Bank has been hearing from people who may be confused about just how much federal deposit insurance covers, especially as stories of bank failures increase," said Holm Bursum IV, vice president and COO of First State Bank. "The basic coverage for deposits in an FDIC-insured community bank is up to $100,000 per depositor and $250,000 per owner for certain retirement accounts, but the FDIC provides separate coverage for deposit accounts held in different categories of ownership that allow a customer to have more than $100,000 insured at the same community bank." Some basic examples of how depositors can expand their coverage beyond $100,000 include:
In addition, revocable Payable on Death accounts are another option that allow a customer to expand beyond $100,000 in the same bank. For example, all of the following accounts could be insured for one couple at one community bank:
"Community bank customers can bank with confidence at their local community bank knowing their money is safe because it is insured by the FDIC and held in well-capitalized and well-regulated institutions," said Cynthia L. Blankenship, ICBA chairman and vice chairman and chief operating officer of Bank of the West, Grapevine, Texas. "Since the FDIC was founded 75 years ago, no one has ever lost a penny of FDIC-insured funds." The FDIC is the best source for tools to determine deposit insurance coverage, including an online Electronic Deposit Insurance Estimator, which can be found on the FDIC's Web site at http://www.fdic.gov/edie. First State Bank also provides interested customers with a CD ROM containing the EDIE program. This is a brief summary of some of the FDIC deposit insurance rules. Depositors should consult with their legal advisers and with the FDIC Web site (www.fdic.gov) prior to establishing different bank accounts or changing the title of an existing bank account to maximize deposit insurance.
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