FDIC

Happy Thursday Readers!

We’ve all seen it, that gold rectangular sticker in the windows of most banking establishments: the member FDIC notice. But what does it mean really? Today I’ll tell you what you need to know about FDIC insurance. This is important stuff!

It all comes down to ownership categories. First, the insurance applies to deposit accounts only (like your savings or trust accounts) in the same ownership category. Separating money into two deposit accounts in the same bank or financial institution, even if they are opened at different branches, will not give you more FDIC coverage. All accounts under your ownership (joint accounts or otherwise) are added together and insured for up to $250,000.

But! Accounts at separately chartered institutions are separately insured, even if the institutions are affiliated.

Also, you might want to know that from now until December 31, 2012, all non-interest accounts (like non-interest bearing checking accounts) are fully insured.

Systematic Savings bank is FDIC certified. Stop by and talk to one of our associates about how we can serve you and your personal or business accounts. We’ve got fresh-baked cookies, don’t be shy!