Making Your Excess Deposits Safe
1 by Joan B. Marshall, Chief Administration Officer for InsBank
In today's banking environment, the security of your deposits is a hot topic following the much publicized failure of IndyMac
Bancorp, a California-basedlender.There is
no doubt that the banking industry is facing challenging times, just as other businesses are during the current economy.
Making sure that your bank is well capitalized and is on sound financial ground
has new importance in today's economic
environment as it relates to your funds on
deposit.
Public information on individual
banks and their capital ratios, noncurrent loan ratios, charge-offs,
etc. is available for all Federal Deposit lnsurance Corporation (FDIC) insured banks
at: http://www.fdic.gov/.
These are important indicators of the quality of
the assets held by any
bank.
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us at [email protected].
About the Author
Joan 6. Marshall serves as
Senior Vice President and
Chief Administrative Officer
of InsBank. Joan joined the
InsBank team in December
of 2001. She has over 25 years of banking experience, and is a member of sen ~ o rmanagement
with resoonsibilitv
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now dver. Many banks, including InsBank,
are ndw in a position to offer coverage in
excesi of $100,000 through programs that
have hade it easy for banking customers
to reckive the security they want on their
CDs kithout the hassle. It's as simple as
your bank being part of a special network
of baAks where excess funds over $100,000
are sdread out among other banks in the
samenetwork, making the full amount eli-
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As is well known,
the
FDIC
insures individual b
deposits up to
$100,000 and, in ad- 4
dition, some retirement accounts such as lRAs are insured
up to $250,000. The FDIC website also
contains a very useful tool called the Electronic Deposit lnsurance Estimator (EDIE).
EDlE can help you determine how to best
manage your accounts to maximize FDlC
insurance.
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EDlE can calculate the insurance coverage
of up to 40 accounts per Account Group,
including Single, IRA, Joint, Trust, and Business accounts. If your account group contains more than 40 accounts visit the Deposit lnsurance Information section of the
FDCl site for additional information.
Historically, depositors would have to take
their Certificates of Deposit (CDs) to multiple banks to receive full FDlC insurance
on deposits over $100,000. Those days are
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gibld for FDIC insurance.All of the legwork
is ddne by your bank and your entire investhent is eligible for FDlC insurance
sincb amounts over $100,000 are broken
intosmaller amounts under $100,000 and
p~ackdwith other FDlC insured banks.
0nd bank, one transaction, one rate for
the customer, that's what InsBank and
mady other banks can do for you. You can
no consolidate your CDs at one bank and
not worry about deposit insurance limitatiotls. InsBank is a member of a network of
banlks offering this service.
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~ledsecontact your Relationship Manager
for additional information, by calling Insbank tol-free at 866.866.2265 or emmailing
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Did You Know?
The Federal Deposit
lnsurance Corporation was
created in 1933 in response
to the thousands of bank
failures that occurred in the
1920s and early 1930s.
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Since the start of FDIC
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insurance on January 1,
1934, no depositor has lost a
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single cent of insured funds
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as a result of a failure.
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