Community Bulletin
Customer Insurance Now Available
Aug 5 2008 12:00AM
“There are few guarantees in life; FDIC Insurance is one of them. Who needs FDIC insurance? Not just the wealthy. Retirees, small business owners, nonprofit organization managers – anyone who wants security,” Bank of Tennessee President Roy L. Harmon, Jr. said.
With recent news about banks such as IndyMac, bank deposit customers have expressed a new interest in FDIC insurance coverage.
“FDIC insurance coverage is not limited to $100,000 per account, “ said Harmon. He went on to explain how the FDIC determines coverage - according to categories of accounts. These categories are determined by the title on the account, such as Joint or Sole Owner.
All individual accounts, that an individual has, are aggregated and insured up to $100,000. For customers with joint accounts, all balances are aggregated and their portion is insured up to $100,000. Separate insurance categories also exist for business accounts, Payable on Death Accounts/Trust Accounts and Retirement Accounts, which can be insured up to $250,000, Harmon said.
The process for calculating FDIC insurance coverage requires a strong understanding of the rules regarding the coverage. A tool is available on the FDIC website (fdic.gov) to help customers estimate the insurance coverage they have on their accounts.
“Another choice, for customers who have concerns regarding FDIC coverage, is a new, smart option to help them manage their money,” said Harmon.
Customers now have access of up to $50 million of FDIC Insurance at Bank of Tennessee. The Certificate of Deposit Account Registry Service, or CDARS, provides a customer with the opportunity for a risk-free investment for those with deposits that exceed the typical $100,000 limit.
In 1980, Congress set FDIC coverage limits at $100,000 per account. Now, bankers using CDARS can offer customers much more.
How does CDARS work? Through a sophisticated computer network of 2,100 qualifying banks, Bank of Tennessee places customer deposits with other FDIC-insured banks, allowing customers to manage all their funds through one portfolio at Bank of Tennessee. The customer views one statement and Bank of Tennessee handles everything.
“CDARS was founded by William Siedman, a former Comptroller of the Currency about six years ago. It has recently been featured in the Wall Street Journal, Business Week and Bankrate.com,” said Harmon. “He also encouraged customers and prospects to go to CDARS.com for extensive information and video about this product.”
Bank of Tennessee has been serving the greater Tri-Cities area for more than 34 years. We continually strive to bring our community innovative banking solutions. For more information, visit bankoftennessee.com or call (423) 378.9500.