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State Bank to Opt-Out of Federal Deposit Insurance Corporation's Transaction Account Guarantee Program for Noninterest-Bearing Transaction Accounts
Beginning January 1, 2010, Chillicothe State Bank, State Bank of Missouri and The State Bank will no longer participate in the FDIC's Transaction Account Guarantee Program. Thus, after December 31, 2009, funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000 under the FDIC's general deposit insurance rules.
The Safest Place For Your Money is Still in the Bank - FDIC increases insurance coverage from $100,000 to $250,000 per person per institution until December 31, 2013.
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.
To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts.
Basic FDIC Deposit Insurance Coverage Limits*
| Single Accounts (owned by one person) | $250,000 per owner** |
| Joint Accounts (two or more persons) | $250,000 per co-owner** |
| IRAs and certain other retirement accounts | $250,000 per owner |
| Trust Accounts | $250,000 per owner per beneficiary subject to specific limitations and requirements** |
* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2013.
Chillicothe State Bank, State Bank of Missouri and The State Bank are all members of the Federal Deposit Insurance Corporation.
Important Debit Cardholders Information: Debit Card Scams
Criminals are becoming increasingly more effective in crafting and executing clever plans to obtain confidential cardholder information. The following examples highlight the latest attempts to capture data from your debit card:
#1: The scam begins with a telephone call from the fraudster to you claiming to be from MasterCard® or Visa® and wanting to verify unusual purchases from your account. Since there were really no purchases made, the cardholder will state and transactions are not valid and is then told by the scam artist that a credit will be issues to his/her account. In order to process the credit, the cardholder is asked to provide card number and the three digit code on the signature panel of the card, or the card verification value. If the cardholder provides the code, the caller will indicate the code verifies the card is in the cardholder's possession and hangs up. The fraudster now has the three digit code in conjunction with the card number and expiration date they already know. The scam artist can now begin making fraudulent Internet or telephone purchases. Typically, if you receive a call with a fraudster claiming to be from MasterCard® , the next day you may receive one claiming to be from Visa® or visa versa.
#2: The scam begins with a fraudster posing as a representative of MasterCard® or Visa® asking cardholders for account information to confirm a prize they have supposedly won. The caller may already have some information about the cardholder, such as name, card number and card expiration date. The caller asks questions to get the three digit code on the signature panel on the back of the card. Once the scam artist has this information, they are able to shop online or by telephone.
These requests sound legitimate. In both scams, the fraudsters go as far as providing employee identification numbers and fake names. They sometimes give the cardholder a reference or control number and advise them to call the toll-free number on their card if they have questions. Please be advised neither MasterCard® or Visa® makes calls directly to cardholders and would never call to verify or ask for any proprietary information, including the card verification value code. If you receive a telephone call requesting card information, it is imperative you do not disclose any personal information, account details or card information.
Cardholders should promptly notify the bank and local law enforcement if you receive suspicious calls or give out your three digit code. Cardholders should also closely monitor their statements for any unfamiliar or unauthorized transactions.
State Bank Joins ICBA to Debunk Deposit Insurance Myths
State Bank and The Independent Community Bankers of America (ICBA) is challenging unfounded concerns raised about the safety of bank deposits. Federal deposit insurance guarantees your deposits are safe in every financial institution insured by the Federal Deposit Insurance Corporation, including community banks. Don’t believe the hype. Get the facts.
Myth: Your money is
safer in big banks.
Fact: No one has ever lost a penny of FDIC-insured deposits held
in community banks. The FDIC insures deposits up to $100,000 per
depositor and $250,000 for certain retirement accounts. If you have more
than $100,000 at a community bank, you can still be fully insured if your
accounts meet certain requirements. For example, accounts owned by a
single person are separately insured from joint accounts or retirement
accounts owned by that person. The FDIC’s Electronic Deposit
Insurance Estimator (on the Web at http://www.fdic.gov/edie)
can determine your coverage.
Community banks like State Bank focus on the needs of local families, businesses and farmers, and their top executives are generally available on site to answer your questions directly and make timely decisions. Many of the nation’s largest banks are structured to serve large corporations and have CEOs headquartered in office suites, not local banks.
Myth: Your money is
stored in a vault at the bank.
Fact: Community bank deposits are reinvested in your local economy.
Your money on deposit will be used to make loans in the community that
help your neighbors start a nearby business, purchase a home, or send a
son or daughter to college. Continuing to hold deposits in community banks
ensures the neighborhoods where you live and work will continue to grow
and thrive.
Myth: Community banks
are undercapitalized.
Fact: The vast majority of our nation’s banks, especially community
banks, are strong, safe and stable.
Community bankers are common sense lenders that don’t engage in
high-risk activities. Instead, they stick to the longstanding fundamentals
of responsible banking, and always seek to serve the long-term interests
of their customers and communities.
Myth: Community banks
are involved in problems with subprime mortgage lending.
Fact: Community banks are common-sense lenders that have avoided subprime
lending.
There is no
mortgage-lending crisis for community banks because they are well-run,
highly capitalized, tightly regulated and more risk-averse than big banks.
Community banks have money to lend homeowners for new purchases and to
refinance existing mortgages. In spite of talk of a credit crunch,
community banks are open for business.
How to avoid being lured into giving out personal information
Law enforcement officials use the word "phishing" to describe a
type of identity theft by which scammers use fake Web sites and e-mails to
fish for valuable personal information from consumers. The FBI also is
calling it the "hottest and most troubling new scam on the
Internet." Even the FDIC's good name was used fraudulently in a
phishing scheme.
In the typical phishing scam, you receive an e-mail supposedly from a company or financial institution you may do business with or from a government agency. The e-mail describes a reason you must "verify" or "re-submit" confidential information — such as bank account and credit card numbers, Social Security numbers, passwords and personal identification numbers (PINs) — using a return e-mail, a form on a linked Web site, or a pop-up message with the name and even the logo of the company or government agency. Perhaps you're told that your bank account information has been lost or stolen or that limits may be imposed on your account unless you provide additional details. If you comply, the thieves hiding behind the seemingly legitimate Web site or e-mail can use the information to make unauthorized withdrawals from your bank account, pay for online purchases using your credit card, or even sell your personal information to other thieves. (See article link below for full text)
Individual Retirement Account Insurance Coverage Increases to $250,000
Effective April 1, 2006, the Federal Deposit Insurance Corporation (FDIC) increased the coverage amount on Traditional and Roth IRA products. The new coverage amount of $250,000, up from $100,000 previously, also applies to self-directed Keogh accounts, "457 Plan" accounts for government employees and employer-sponsored "defined contribution plan" accounts that are self-directed. Under the new rules, all of your deposits held at the same insured financial institution (State Bank) that are in the included category of retirement accounts are added together and the total is insured up to $250,000. Your retirement accounts are also separately insured from any other deposits you may have at the bank. Click Here for more information on the new rules from the FDIC.
State Bank Offers Up To $50 million in
Federal Deposit Insurance Coverage
State Bank customers can now access up to
$50 million in Federal deposit insurance with the Certificate of Deposit Account Registry Service, or CDARS. With this new service, our bank can, in effect, provide a customer with the opportunity for a risk-free investment.
“With the safety and convenience that our bank offers through CDARS, our customers have a new, smart option to help them manage their money,” says Mark Simmer, Chillicothe State Bank President, “There are few guarantees in life, FDIC Insurance is one of them.”
In 1980, Congress set FDIC coverage limits at $100,000 per account. Inflation over the past 23 years has eroded more than half the value of that coverage. Now, bankers using CDARS can offer customers much more.
“Who needs it? Not just the wealthy. Retirees, small business owners, nonprofit organization managers – anyone who wants security,” Mark Heins, State Bank of Missouri President added.
How does CDARS work? Through a sophisticated computer network, State Bank places customer deposits with other FDIC-insured banks, allowing customers to manage all their funds through one portfolio at State Bank.
“Customers benefit from the ease of working with only one institution – State Bank -- and receiving only one statement,” Vickie McGinnis, The State Bank President in Richmond said.
CS Bancshares, Inc. is a multi-bank holding company headquartered in Chillicothe, Missouri. Chillicothe State Bank, The State Bank in Richmond and State Bank of Missouri, with locations in Alma, Concordia and Grain Valley are all members of the CS Bancshares, Inc. family. We continually strive to bring our community innovative banking solutions. For more information on the CDARS program at State Bank, please contact your local bank branch.
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Consumer Education Articles:
When Internet Scam Artists Go "Phishing", Don't Take the Bait
Taking Control of Your Finances: A Special Guide for Young Adults
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