community-banking
January 2, 2024
The Federal Deposit Insurance Corporation (FDIC) helps protect your money by insuring it up to $250,000 per depositor, per ownership category[1].
In this article, we'll explore what it means to be FDIC-insured, what the FDIC covers, and how to verify whether community banks in Indiana, like Centier Bank, are covered.
Let's dive into the world of bank insurance and learn how your money is safeguarded.
The FDIC Explained
The Federal Deposit Insurance Corporation (FDIC) was established in 1933 during the Great Depression. It is an independent federal agency that provides deposit insurance to banks and savings associations.
The FDIC is a U.S. federal agency that:
- Insures deposits made by individuals and businesses in FDIC-insured banks.
- Ensures stability in the banking system by preventing bank runs.
- Regulates and supervises banks for safety and soundness.
- Acts as a resolution authority for failing banks.
- Promotes financial education and consumer protection.
- Operates independently and is funded by bank premiums.
The FDIC safeguards deposits, maintains trust in the banking system, and plays a key role in U.S. financial stability.
What Does it Mean to Be FDIC Insured?
When a bank is FDIC-insured, it means that your deposits are protected up to certain limits in the event of bank failure or other financial difficulties. In essence, it's a safety net for your savings.
Here are some additional details about FDIC insurance:
- FDIC insurance covers deposit accounts, including checking, savings, and money market accounts
- FDIC insurance is free. There is no charge to you for having an FDIC-insured account.
- FDIC insurance is backed by the full faith and credit of the United States government. This means that the government will pay back your covered insured deposits if your FDIC-insured bank fails.
If you have any questions about FDIC insurance, you can contact the FDIC at 1-877-275-3342
What is Covered?
FDIC insurance covers various types of deposits, including checking accounts, savings accounts, certificates of deposit (CDs), and money market accounts. The standard insurance coverage is up to $250,000 per depositor, per ownership, per bank.This means that even if your bank experiences financial trouble, your money is protected up to that limit.
You can find out more about FDIC insurance coverage at the FDIC website[1].
What is Not Covered?
Not all financial products or investments are covered by the FDIC.
Some of the items not covered include:
- Stocks
- Bonds
- Mutual funds
- Annuities
So, if you have a diversified investment portfolio beyond your bank deposits, know that FDIC insurance won't protect some assets.
Are Community Banks Covered by the FDIC?
The FDIC covers deposits for thousands of banks in the United States. To confirm whether any bank or credit union is FDIC-insured, check with the FDIC's BankFind Suite[2].
When you choose a community bank like Centier that is FDIC-insured, your deposits are protected. In fact, you can enjoy the same level of protection as you would at a larger FDIC-insured national bank.
Community banking is often deeply rooted in their local communities. In most cases, they offer a personalized, customer-centric approach to banking. The combination of community values and FDIC insurance makes them a trustworthy choice for individuals and small businesses.
Centier Bank provides financial protection in towns such as South Bend, Gary, Chesterton, Valpo, Michigan City, Fort Wayne, Indianapolis, Lafayette, and West Lafayette.
What Can You Do if You Have More Money than the FDIC Insures?
You may want to explore Accounts likeCDs and IRAs,high-interest savings accounts, ormoney market accountsas alternative savings solutions. Savings products can provide security and potential growth while keeping your money within the FDIC insurance limits.
Separate accounts are not each individually covered up to $250,000. So, we recommend you look at all of your account types and use various ownership categories to maximize your FDIC coverage.
Visit the FDIC's Electronic Deposit Insurance Estimator (EDIE) Calculator[3] to explore different ownership types and potential coverage.
Savings products and diverse ownership structures can provide security and potential growth while keeping your money within the FDIC insurance limits.
Saving vs Investing: What's the Difference?
Are Any Types of Banking Services Not Covered by the FDIC?
While Centier, an fdic-insured community bank, is covered, there are certain types of banks that may not have FDIC insurance.Private banks, for example, may not be FDIC-insured because they cater to a select clientele and offer specialized services. Credit unions are federally insured by the National Credit Union Administration, but they are not FDIC-insured.
Additionally, banks that operate primarily outside the United States or have not sought approval from the FDIC may also lack FDIC insurance.
It's important to verify a bank's FDIC insurance status before opening an account. This is especially true if you are thinking about a bank outside the traditional community or national bank realm. Again, you can find out via the FDIC's BankFind Suite.
Yes, Centier, a Community Bank, is Safeguarded by the FDIC
Centier, a community bank, is just as safe as a big bank. In fact, the FDIC covers banks, big and small. So, if you're looking for a safe place to put your money, a verified FDIC-insured community bank is a great option.
Centier Bank is a community bank that is FDIC-insured. This means that your money issafeguarded in the communities they serve.With Centier, you can be confident that your money is protected, no matter what happens.
As you navigate your financial journey, make informed decisions, and choose the right banking partner that puts your financial well-being first. With FDIC insurance and a range of financial products, your financial future is secure.
Centier, a local community bank, is not only insured but also invested in the prosperity of your community. This makes it a wise choice for banking. For more information and to explore our range of savings and services options.
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