Community banks remain strong and sound
Sunflower Bank reminds its customers that community banks remain strong and sound – and insured deposits are safe and backed by the full faith and credit of the federal government through the Federal Deposit Insurance Corporation (FDIC).
Amid recent news and questions about the U.S. economy, including rising energy prices, volatility within certain Wall-Street financial institutions, stock market concerns and globalization reports, community banks remain a valuable option for customers’ money – including savings accounts, checking accounts and certificates of deposits.
Despite the current market turmoil, most community banks continue to thrive: They have plenty of liquidity, sensible underwriting standards, and are ready to lend – factors essential to keeping your community strong and families secure in their homes. Sunflower Bank is no different – deposits are safe, and several effective saving options are available to customers. Visit our FAQ explaining recent media coverage of deposit insurance.
“Challenging economic news always causes concern, but we remind our customers accounts at Sunflower Bank are safe, and as a community bank, we’re fully dedicated to helping our customers save and plan for their future” said John Hanley, spokesman for Sunflower Bank. “The federal government insures funds held in an FDIC-insured community bank for up to $100,000 and $250,000 for certain retirement accounts.”
All bank depositors also can have insurance coverage in excess of the basic limits of $100,000 per institution, with an additional $250,000 per institution for IRAs. For instance, subject to certain conditions, single and joint accounts are separately insured, and revocable trusts generally provide $100,000 of coverage per beneficiary.
The FDIC insures deposits and protects depositors’ funds in banks and savings associations. FDIC deposit insurance covers each depositor’s account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest. An official FDIC sign at each teller window or teller station in your local community bank is confirmation the institution is covered by FDIC insurance.
According to the FDIC, insurance covers all types of deposits received by a financial institution in its usual course of business. This includes savings and checking accounts, NOW accounts, Christmas club accounts, and certificates of deposit. Cashiers’ checks, officers’ checks, expense checks, loan disbursement checks, interest checks, outstanding drafts, negotiable instruments and money orders drawn on the institution are also considered deposits, and are protected by the FDIC.
“Community banks are stable and well-capitalized,” said Cynthia L. Blankenship, chairman of the Independent Community Bankers Association (ICBA). “In spite of recent headlines about the challenges facing large Wall Street financial institutions, our customers can bank with confidence knowing their money is safe because it is insured by the FDIC.”
Overall, the U.S. banking system remains on solid footing through guarantees provided by FDIC insurance. Industry-funded reserves are strong and the agency’s insurance guarantee is backed by the full faith and credit of the United States Government. According to FDIC Chairman Sheila C. Bair, no bank depositor has ever lost a penny of insured deposits.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 8000-plus banks and savings associations, promoting the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
If you have any questions about whether your deposits are insured, we encourage you to consult with a Sunflower Bank professional, call 1-888-827-5564 or contact the FDIC’s deposit insurance specialists at 1-877-ASK-FDIC.
On the Web:
- Electronic Deposit Insurance Estimator . An FDIC tool and interactive application that can help you learn about deposit insurance and calculate the insurance coverage of your accounts.
- For more information on community banks: ICBA.
