A bank has evolved from a standard source of financial safekeeping to immense financial supermarkets that offer a large assortment of accounts, products, and services. These far exceed the traditional checking account and the standard saving account. This makes choosing a bank difficult.
As a consumer, you now have the option to obtain an assortment of stocks, many different types of bonds, a multitude of mutual funds, various annuity types, life insurances, and other financially-sound products and services.
Unfortunately, not all products are insured by the FDIC. As a consumer, it is in your best interest to make certain that all accounts and products that you obtain are insured by the FDIC.
In fact, this should be the very first question that you ask before deciding to do business with any bank.
Are You Insured?
One of the most common reasons that consumers are now agreeing to products and accounts that are not insured by the FDIC is because of convenience. Customers want instant gratification. They want convenience. Unfortunately, instant gratification and convenience may come at a heavy cost. Each account and product that lacks FDIC insurance stands a high risk to experience financial loss. Choosing the wrong bank is very easy.
The good news is that the federal law actually outlines what types of accounts are insured by the FDIC. To reduce the possibility of incurring huge financial losses, it is imperative that you become familiar with these types of accounts. The following outlines the specifications, as outlined by the federal law:
- Primary checking accounts – which include popular money market accounts – are insured up to a total of $250,000 per person, within each financial institution.
- Negotiable Order of Withdrawal accounts – commonly referred to as “NOW” – are covered by the FDIC insurance program.
- All standard savings accounts are insured.
- Retirement accounts are covered by the FDIC.
- Certificates of Deposit – which are also called “CDs” – are completely covered by the FDIC insurance program.
If you are interested in obtaining a financial account at a bank that is financially secured through the insurance offered by the FDIC, you may contact Somerville National Bank today.
We have a multitude of specialists standing by that will educate and inform you on the products and services that offer FDIC insurance.