How to Protect Your Bank Deposits

If you have insured accounts with a balance greater than $100,000, you should be aware of the following:

• Because deposits in different insured banks are covered separately, consider taking some money out of the account that exceeds $100,000 and moving it to another account at another insured bank.
• Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $100,000 at one bank and still be fully covered. Such qualifying accounts include joint accounts, individual retirement accounts ($250,000 of insurance each), "payable on death" accounts, and others kinds of accounts termed "ownership categories."
• If your qualifying account is over $100,000 at the time of a bank takeover, you may be partially reimbursed for the uninsured portion, after a period of time, from sales of the bank's assets.

For more information, visit the FDIC's web site (www.fdic.gov) or call the FDIC toll-free at 877-275-3342.

Check Your Bank's Stability

In addition to making sure your deposits are FDIC-insured, we also recommend you check the financial stability of your bank through Veribanc. Go to www.veribanc.com or call 1-800-837-4226.

Veribanc provides "safe and sound" bank ratings on all U.S. federally insured financial institutions in "plain English." (As you know, we're big fans of straight talk!) The cost is $10 for the ratings on the first bank, plus $5 each for each additional rating requested during the same phone call.

Veribanc's system has been around for over 25 years and has a good track record of helping people protect their deposits and investments against bank failure and fraud. If you find your bank isn't as financially stable as you would like, take steps now to move your money to a more secure institution.

We know it's scary to think of bank failures, but if you make sure your deposits are FDIC insured and verify that your bank is in good financial shape, you can have peace of mind at a time even in these tough times.

Be safe!

For more of our advice, see the following articles:

• What To Do If Your Bank Fails
• What the "Fannie and Freddie" Flap Means for You
• Getting Top-Notch Service from a Safe Bank
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