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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: The FDIC
takeover of IndyMac Bancorp means my bank is at risk.
Fact: IndyMac Bancorp was taken over because, in part, depositors became
fearful and attempted to close their accounts at once, destabilizing the
bank. The
overwhelming majority of the nation’s banks are safe and well
capitalized. As stated by FDIC Chairman Sheila Bair, IndyMac is only one
of nearly 8,500 depository institutions operating in the United States and
represents just 0.2 percent of banking-industry assets. There is little
chance your bank will be taken over by the FDIC. And if that does happen,
you will continue to have virtually uninterrupted access to your insured
deposits.
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.
New Security Enhancement for all Internet Banking Accounts
State Bank is committed to providing the most secure online access to your accounts for our Internet Banking service. In order to strengthen the security of accessing your online accounts, effective June 1, 2006, we will implement an online security system that will require you to answer your security question correctly to gain access to Internet Banking. This will be in addition to your Access ID and Passcode. Please take time to review your security question and answer in the Manage Your Accounts section under the “user services” tab and make sure it is up to date. Learn More.
When Internet Scam Artists Go "Phishing," Don't Take the Bait, FDIC Consumer NewsHow 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.
Scam Uses FDIC Name In E-Mails
The Federal Deposit Insurance Corporation (FDIC) issued a special alert warning depository institutions that a phishing scam is sending fraudulent e-mails to consumers under the agency's name. The phone e-mails, using a subject line reading "IMPORTANT: Notification of Federal Deposit Insurance Corporation" ask recipients for checking or savings account information under the poly of fighting identity theft and other fraud. The e-mails encourage recipients to enroll in "the FDIC protection system" at a bogus FDIC web page, which then requests confidential information.
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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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