Is my bank safe?

Hearing about bank closings will make any optimist uneasy about the future. so I

thought this might be a good time for everyone to know if their accounts are

insured and if their bank is healthy or not. Here is some info about FDIC..from

FDIC.gov.



What Is the FDIC?



The FDIC – short for the Federal Deposit Insurance Corporation – is

an independent agency of the United States government. The FDIC protects you

against the loss of your deposits if an FDIC-insured bank or savings association

fails. FDIC insurance is backed by the full faith and credit of the United

States government. The term “insured bank” is used in this brochure

to mean any bank or savings association with FDIC insurance.



To check whether your bank or savings association is insured by FDIC, call

toll-free 1-877-275-3342, use "Bank Find" at www.fdic.gov/deposit/index.html, or

look for the official FDIC sign where deposits are received.



FDIC Official Teller Sign





Why Is FDIC Insurance Important to You?



All FDIC-insured banks must meet high standards for financial strength and

stability. The FDIC, with other federal and state regulatory agencies, regularly

reviews the operations of insured banks to ensure these standards are met. Even

with these safeguards, some insured banks fail. If your insured bank fails, FDIC

insurance will cover your deposits, dollar for dollar, including principal and

any accrued interest, up to the insurance limit.



Historically, insured deposits are available to customers of a failed bank

within just a few days. Since the start of the FDIC in 1933, no depositor has

ever lost a penny of insured deposits.

What Does the FDIC Insure?



The FDIC insures all deposits at insured banks, including checking, NOW and

savings accounts, money market deposit accounts, and certificates of deposit

(CDs), up to the insurance limit.



The FDIC does not insure the money you invest in stocks, bonds, mutual funds,

life insurance policies, annuities, or municipal securities, even if you

purchased these products from an insured bank.

Basic Insurance Amount Is $100,000



The basic insurance amount is $100,000 per depositor per insured bank. Certain

retirement accounts, such as Individual Retirement Accounts, are insured up to

$250,000 per depositor per insured bank.



If you and your family have $100,000 or less in all of your deposit accounts at

the same insured bank, you do not need to worry about your insurance coverage --

your deposits are fully insured.

Coverage Over $100,000



The FDIC provides separate insurance coverage for deposit accounts held in

different categories of ownership.



You may qualify for more than $100,000 in coverage at one insured bank if you

own deposit accounts in different ownership categories.

Common Ownership Categories



The most common ownership categories are:



* Single Accounts

* Certain Retirement Accounts

* Joint Accounts

* Revocable Trust Accounts



Single Accounts



These are deposit accounts owned by one person and titled in that person’s

name only. All of your single accounts at the same insured bank are added

together and the total is insured up to $100,000. For example, if you have a

checking account and a CD at the same insured bank, and both accounts are in

your name only, the two accounts are added together and the total is insured up

to $100,000.



Note: Retirement accounts and qualifying trust accounts are not included in this

ownership category.

Certain Retirement Accounts



These are deposit accounts owned by one person and titled in the name of that

person’s retirement plan. Only the following types of retirement plans are

insured in this ownership category:



* Individual Retirement Accounts (IRAs) including traditional IRAs, Roth

IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plans

for Employees (SIMPLE) IRAs

* Section 457 deferred compensation plan accounts (whether self-directed or

not)

* Self-directed defined contribution plan accounts

* Self-directed Keogh plan (or H.R. 10 plan) accounts



All deposits that an individual has in any of the types of retirement plans

listed above at the same insured bank are added together and the total is

insured up to $250,000. For example, if an individual has an IRA and a

self-directed Keogh account at the same bank, the deposits in both accounts

would be added together and insured up to $250,000.



Naming beneficiaries on a retirement account does not increase deposit insurance

coverage.



Note: For information about FDIC insurance coverage for a type of retirement

plan not listed above, refer to the FDIC resources on the back of this brochure.

Joint Accounts



These are deposit accounts owned by two or more people. If both owners have

equal rights to withdraw money from a joint account, each person’s shares

of all joint accounts at the same insured bank are added together and the total

is insured up to $100,000.



If a couple has a joint checking account and a joint savings account at the same

insured bank, each co-owner's shares of the two accounts are added together and

insured up to $100,000, providing up to $200,000 in coverage for the couple's

joint accounts.



Example: John and Mary have a $220,000 CD at an insured bank. Under FDIC rules,

each person's share of each joint account is considered equal unless otherwise

stated in the bank’s records. John and Mary each own $110,000 in the joint

account category, putting a total of $20,000 ($10,000 for each) over the

insurance limit.

Account Holders Ownership Share Amount Insured Amount Uninsured

John $ 110,000 $ 100,000 $ 10,000

Mary $ 110,000 $ 100,000 $ 10,000

Total $ 220,000 $ 200,000 $ 20,000



Note: Jointly owned qualifying trust accounts are not included in this ownership

category.

Revocable Trust Accounts



These are deposits held in either payable-on-death (POD) accounts or living

trust accounts.



Payable-on-death (POD) accounts – also known as testamentary or Totten

Trust accounts – are the most common form of revocable trust deposits.

These informal revocable trusts are created when the account owner signs an

agreement – usually part of the bank's signature card – stating that

the deposits will be payable to one or more named beneficiaries upon the owner's

death.



Living trusts – or family trusts – are formal revocable trusts

created for estate planning purposes. The owner of a living trust controls the

deposits in the trust during his or her lifetime.



Note: Determining coverage for living trust accounts can be complicated and

requires more detailed information about the FDIC's insurance rules than can be

provided in this publication. If you have a living trust account, contact the

FDIC at 1-877-275-3342 for more information.



Deposit insurance coverage for revocable trust accounts is based on each owner's

trust relationship with each qualifying beneficiary. While the trust owner is

the insured party, coverage is provided for the interests of each beneficiary in

the account. The FDIC insures the interests of each beneficiary up to $100,000

for each owner if all of the following requirements are met:



* The beneficiary is the owner's spouse, child, grandchild, parent, or

sibling. Adopted and stepchildren, grandchildren, parents, and siblings also

qualify. In-laws, grandparents, great-grandchildren, cousins, nieces and

nephews, friends, organizations (including charities), and trusts do not

qualify.

* The account title must indicate the existence of the trust relationship by

including a term such as payable on death, in trust for, trust, living trust,

family trust, or an acronym such as POD or ITF.

* For POD accounts, each beneficiary must be identified by name in the

bank's account records.



If any of these requirements are not met, the entire amount in the account, or

any portion of the account that does not qualify, would be added to the owner's

other single accounts, if any, at the same bank and insured up to $100,000. If

the revocable trust account has more than one owner, the FDIC would insure each

owner's share as his or her single account.



Note: The following example applies to POD accounts only. Coverage may be

different for some living trusts.



Example: Bill has a $100,000 POD account with his wife Sue as beneficiary. Sue

has a $100,000 POD account with Bill as beneficiary. In addition, Bill and Sue

jointly have a $600,000 POD account with their three children as equal

beneficiaries.

Account Title Account Balance Amount Insured Amount Uninsured

Bill POD to Sue $ 100,000 $ 100,000 $ 0

Sue POD to Bill $ 100,000 $ 100,000 $ 0

Bill & Sue POD to 3 children $ 600,000 $ 600,000 $ 0

Total $ 800,000 $ 800,000 $ 0



These three accounts totaling $800,000 are fully insured because each owner is

entitled to $100,000 of coverage for the interests of each qualifying

beneficiary in the accounts. Bill has $400,000 of insurance coverage ($100,000

for the interests of each qualifying beneficiary – his wife in the first

account and his three children in the third account). Sue also has $400,000 of

insurance coverage ($100,000 for the interests of each qualifying beneficiary

– her husband in the second account and her three children in the third

account).



When calculating coverage for revocable trust accounts, be careful to avoid

these common mistakes:



* Do not assume that coverage is calculated as $100,000 times the number of

people –owner(s) and beneficiary(ies) – named on a trust account.

Coverage is provided for the interest of each qualifying beneficiary named by

each owner. Additional coverage is not provided to the owners for naming

themselves as owners. For example, a father's POD account naming two sons as

equal beneficiaries is insured to $200,000 only -- $100,000 for the interest of

each qualifying beneficiary.



* Do not assume that the FDIC insures POD and living trust accounts

separately. In applying the $100,000 per-beneficiary insurance limit, the FDIC

combines an owner's POD accounts with the living trust accounts that name the

same beneficiaries at the same bank.