CDARS  for Large Deposit Protection

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 Bank.

            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 added.

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.

From the 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.

Currently, more 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.

Online EDIE

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
 http://www.fdic.gov/deposit/deposits/index.html.

New Coverage For Self-Directed Retirement Accounts

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:
  1-800-925-4618
  

• 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:
  www.fdic.gov/deposit
   

• Send your questions by e-mail using the FDIC's online Customer Assistance Form at:
  http://www2.fdic.gov/starsmail/
   

• Mail your Questions to:
  FDIC
  Division of Supervision and Consumer Protection
  Attn: Deposit Insurance Outreach
  550 17th Street, NW
  Washington, DC 20429-9990