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Bank Safety

      our deposits in an FDIC-insured bank or
      savings institution couldn’t be safer. These
    institutions are fundamentally sound, their insurance fund is well-capitalized, and a U.S. Government agency, the Federal Deposit Insurance Corporation (FDIC), administers the deposit insurance program.

Banks and savings institutions maintain capital reserves and observe lending policies that aid in protecting those reserves.

This is one reason why they continue to hold up well in periods of tight credit and financial turmoil.

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Your money is only as safe as the insurance system that protects it. The fund protecting federally insured banks and savings institutions is backed by the full faith and credit of the United States Government. Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confi dence in the nation’s banking system. The FDIC insures deposits at the nation’s 8,560 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars—insured fi nancial institutions fund its operations. Consider these other facts about the Deposit Insurance Fund (DIF), which is administered by FDIC to protect federally insured banks and savings institutions:

FDIC’s basic coverage has been increased from $100,000 to $250,000. Certain retirement accounts coverage had previously been increased to $250,000, and this coverage has not changed.

The increased basic coverage

was authorized by Congress in response to recent economic turbulence, and is scheduled to be in effect through 2009. Coverage can be even greater depending upon how your accounts are structured

Capitalization of the fund is now over $50 billion in reserves. This is one good reason why not one penny of insured savings has ever been lost by a customer of a federally insured bank. Federally Insured

The great majority of federally insured banks and savings institutions meet or exceed capitalization adequacy goals, the leading indicator of safety and soundness for banks, and bank profi tability remains strong.

The FDIC closely monitors the contribution levels of member institutions in order to evaluate the current viability of the fund. FDIC uses a risk-based assessment method, assuring that banks that might have a riskier profi le pay more in annual premiums to help cover this risk.

Go to the FDIC web site at www.fdic.gov to find publications. Or call toll-free 1-877-ASKFDIC (1-877-275-3342).

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