Reminds Americans That No Depositor Has Ever Lost a Penny of Insured
Funds
WASHINGTON, June 16 /PRNewswire/ -- Seventy-five years after President
Franklin Delano Roosevelt signed legislation creating the Federal Deposit
Insurance Corporation, the FDIC continues to safeguard the money of
consumers throughout America in FDIC-insured accounts.
"Deposit insurance has given consumers peace of mind that their insured
money is safe. We at the FDIC are very proud to say that no depositor has
ever lost a penny of insured funds at an FDIC-insured institution. As bank
customers age and accumulate wealth in savings and retirement accounts, now
more than ever, it's important for people to know their deposit insurance
limits," Chairman Sheila C. Bair said today.
In remarks commemorating the FDIC's 75th anniversary, Bair announced an
education campaign designed to raise awareness about deposit insurance
limits. The campaign includes national advertising, a multi-city outreach
effort, and an award program for outstanding work in financial education.
Advertising will appear in major daily newspapers, news magazines, and
lifestyle publications to increase awareness about deposit insurance
limits.
The basic insurance amount for funds in FDIC-insured banks is $100,000
-- per depositor, per bank. Certain retirement accounts are insured up to
$250,000 per depositor, per bank. It is possible to obtain coverage above
the limits based on how accounts are structured. The FDIC encourages
consumers to learn more about deposit insurance limits by visiting
http://www.fdic.gov, calling toll-free 1-877-ASK-FDIC or asking their FDIC-insured
bank.
Ronnie McCowan, pastor of St. Timothy Fellowship African American
Methodist Episcopal Church (A.M.E.) in Kansas City, knows firsthand the
importance of deposit insurance. His nonprofit organization's money was
deposited in Douglass National Bank, which failed in January 2008. McCowan
said that because of FDIC insurance, he knew that his organization would
retain, and be able to access, its funds. All deposits of Douglass National
Bank were assumed by Liberty Bank.
"The FDIC is an unsurpassed insurance policy. Because I was aware of
deposit insurance limits, I knew that our money was safe," Rev. McCowan
said. "Without deposit insurance, I am certain that the Black Heritage
Organization could not have continued our important work. Most Americans
take the FDIC's deposit insurance for granted, but those of us who've
experienced a bank failure know the vital role the FDIC plays in fostering
confidence and stability in the banking system and the economy."
Chairman Bair will be embarking on a road tour, stopping in four FDIC
regional office cities in July and September, where she will engage guests
in discussions about deposit insurance, what it means to be an FDIC-insured
institution, the costs and benefits of banking services, and the consumer
protections resulting from federal regulation of the banking industry.
Panel discussions will also address bank services as they relate to
building assets and accessing mainstream credit services, including
mortgage lending. Moving beyond the topic of financial education to joining
the financial mainstream, Chairman Bair wants to stimulate discussion
between financial educators and bankers about how banks can expand access
to their services among low- and moderate-income communities and other
traditionally underserved populations. Finally, the Chairman will be
announcing a new award to highlight innovation in financial education.
Later this year, Chairman Bair will present awards to six people or
organizations (one from each region) for their efforts.
Chairman Bair said, "The FDIC has a proud and storied tradition. We've
protected the savings of consumers, we've kept the banking system stable
and secure, and we've built confidence and stability into the U.S.
economy."
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 8,494 banks and savings associations and it
promotes 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.
FDIC press releases and other information are available on the Internet
at http://www.fdic.gov, by subscription electronically (go to
http://www.fdic.gov/about/subscriptions/index.html) and may also be obtained
through the FDIC's Public Information Center (877-275-3342 or
703-562-2200). PR-48-2008
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SOURCE Federal Deposit Insurance Corporation
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Related links:
http://www.fdic.gov
CONTACT:
Andrew Gray of the Federal Deposit Insurance
Corporation, +1-202-898-7192
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