March 13, 2023
Sleep tight — Your money is safe!
Bankers weren't the only people to get a massive heads up with the failure of Silicon Valley and Signature Banks. Depositors at all levels wondered: "What about me? Are my funds safe?" As a bank/credit union CEO, you want to ensure that your account holders understand and are taking full advantage of FDIC and NCUA protection, so read on for a few tips on how you can help them leverage that insurance coverage.
Explaining FDIC / NCUA Coverage Limits
The first step in helping account holders leverage their insurance coverage is to make sure they understand how it works. As a reminder: the amount of coverage provided depends on the category and ownership status of the account.
There are 4 main categories:
- Single — The total of all accounts owned and in title of one person is insured to a maximum of $250,000.
- Joint — Each depositor listed is insured to a maximum of $250.000.
- Retirement — For any one person, this account is insured to a maximum of $250,000.
- Revocable Trust — Insurance covers $250,000 per account beneficiary up to 5 beneficiaries, for a potential total of $1.25 million.
Client-facing staff should be knowledgeable and comfortable with explaining how insurance coverage works and how account holders can maximize their benefits from insurance. By understanding how much coverage each type of account offers and creating multiple accounts with different ownership statuses when necessary, staff can provide assurance that deposits are fully protected.
The BVS Library contains engaging, recently updated account-holder educational videos covering both FDIC and NCUA insurance information. Complimentary copies of these videos are now available to any financial institution simply by calling (800) 553-5972.
BVS Performance Solutions
4060 Glass Rd. N.E.
Cedar Rapids, Iowa 52402
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