WORRIED ABOUT THE SAFETY
OF YOUR MONEY?
CDARS Can Give
You Peace of Mind
Even though headlines report huge financial losses, large businesses
in trouble and turmoil in the securities and other markets, today you can enjoy
the total security of multi-millions of dollars in FDIC insurance coverage at Advantage
Through a service called CDARS (pronounced "cedars"), Advantage Bank can offer
you hundreds of times the standard $250,000 level of coverage found at most banks.
"There is nothing safer than FDIC insurance," said Randy Smith, President and
CEO of Advantage Bank.
"Why? Since the FDIC was created in 1933, no one has lost a single penny in an
FDIC-insured account. Because of FDIC insurance, four generations of Americans
have been able to sleep soundly at night knowing that their money is fully
protected," Smith said.
"Now with CDARS, we can protect depositors for
multi-millions of dollars, and that
means that you can sleep soundly without worrying about your money, too," he
CDARS is a
deposit placement service. Deposits placed through CDARS meet the pass-through
insurance coverage guidelines established by the FDIC.
To offer CDARS, a
bank must belong to a special network called the Promontory Network. When a
customer places a large deposit with a Network member, the bank arranges for the
placement of funds into CDs issued by other Network banks - in increments of
less than $250,000 to ensure that both principal and interest are eligible for
full FDIC protection.
customers' point of view, CDARS is one-stop shopping. Regardless of the number
of CDs they receive, CDARS customers work with only one bank, sign only one
agreement, and receive one account statement.
than 1700 institutions, including Advantage Bank, are members of the Promontory
Network. CDARS, which was first offered in January, 2003, is endorsed by the
American Bankers Association.
"If you have ever
heard the saying 'As safe as money in the bank,' you know how valuable FDIC
insurance coverage is. At Advantage Bank, we're delighted we can offer you many
times the coverage that most other banks can," Smith said.
The Federal Deposit Insurance Corporation (FDIC) has released
a new expanded version of its Electronic Deposit Insurance Estimator, also known
as "Online EDIE," for use by bank customers. With this new version, users can
estimate insurance coverage for various account types. Bank customers can access
the new Online EDIE on the FDIC's Web site at
New Coverage For Self-Directed Retirement
These are deposits you have in retirement accounts for which
you have the right to direct how the money is invested, including the ability to
direct that the funds be deposited at an FDIC-insured bank. Types of
self-directed retirement accounts include traditional and Roth Individual
Retirement Accounts (IRAs), Simplified Employee Pension (SEPs) Accounts,
"Section 457" deferred compensation plan accounts, self-directed Keogh plan
accounts, and self-directed defined contribution plan accounts.
All of your self-directed retirement accounts at the same
insured bank are added together and the total is insured up to $250,000.
Naming beneficiaries on a self-directed retirement account
does not increase insurance coverage. The basic insurance amount for regular
deposit accounts is $250,000 per depositor per insured bank.
For More Information From The FDIC:
Call toll - free at 1-877-ASK-FDIC (1-877-275-3342)
From 8 a.m. until 8 p.m. (Eastern Time)
Monday through Friday
Hearing Impaired Line:
Request a copy of "Your Insured Deposits: FDIC's Guide
to Deposit Insurance Coverage," which provides a detailed description of
the ownership categories, by calling toll free at: 1-877-275-3342
Read more about FDIC insurance online at:
Send your questions by e-mail using the FDIC's online
Customer Assistance Form at:
Mail your Questions to:
Division of Supervision and Consumer Protection
Attn: Deposit Insurance Outreach
550 17th Street, NW
Washington, DC 20429-9990
NOTICE OF EXPIRATION OF THE TEMPORARY
INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS
By operation of federal law, beginning January
1, 2013, funds deposited in a noninterest-bearing transaction account
(including an Interest on Lawyer Trust Account) no longer will
receive unlimited deposit insurance coverage by the Federal Deposit
Insurance Corporation (FDIC).
Beginning January 1, 2013, all of a
depositor’s accounts at an insured depository institution, including all
noninterest-bearing transaction accounts, will be insured by the FDIC up
to the standard maximum deposit insurance amount ($250,000), for each
deposit insurance ownership category.
information about temporary FDIC insurance coverage of
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