FDIC Insurance

Your FDIC insured deposits are safe and backed by the full faith and credit of the federal government. Click & Learn>>

During difficult economic times, some people may be concerned about the safety of the money they have in their checking, savings and retirement accounts. They shouldn’t be. Our customers can bank with confidence knowing their money is safe because it is insured by the Federal Deposit Insurance Corporation (FDIC). Since the FDIC was founded in 1933, no one has ever lost a penny of FDIC-insured funds.

The FDIC insures deposits and protects depositors’ funds in banks. FDIC insurance covers each depositor’s account, dollar-for-dollar, up to the $250,000 insurance limit, including principal and accrued interest.

Here are resources to help you answer questions about the current health of banks and the federal deposit insurance system:

• FDIC Web Site: Insuring Your Deposits
• Deposit Insurance: Myths and Facts
• FDIC Electronic Deposit Insurance Estimator (EDIE)
 

Notice: By federal law, as of January 1, 2013, funds in a noninterest-bearing transaction account (including an IOLTA/IOLA) will no longer receive unlimited deposit insurance coverage, but will be FDIC-insured to the legal maximum of $250,000 for each ownership category. For more information, visit www.fdic.gov/deposit/deposits/unlimited/expiration.html

Maximizing Your FDIC Insurance Coverage

Some basic examples of how depositors can expand their coverage beyond $250,000 include:

• A husband and wife both have separate bank accounts in each of their names
   (each account is covered for $250,000, or $500,000 total).
• The couple also has a joint account which is covered for up to $500,000.
• The husband and wife each have separate IRA accounts for $250,000 each.

In addition, revocable Payable on Death (P.O.D.)* accounts are another option that allow a customer to expand beyond $250,000 in the same bank. For example, all of the following accounts could be insured for one couple at one bank:

• John Doe, P.O.D. to Jane Doe: $250,000
• Jane Doe, P.O.D. to John Doe: $250,000
• John and Jane Doe, P.O.D. to Baby Doe 1, Baby Doe 2 and Baby Doe 3: $1,500,000
• John and Jane Doe, P.O.D. to Grandchild Doe 1, Grandchild Doe 2 and Grandchild
   Doe 3: $1,500,000

Multi-Million Dollar FDIC Insurance on Certificates of Deposit

Mission Community Bank is a member of CDARS®, the Certificate of Deposit Account Registry Service®. Your large deposit is divided into smaller amounts and placed with other FDIC insured banks which are also members of the CDARS network. Then, those member banks issue CDs in amounts under $250,000 , so that your entire investment is eligible for FDIC insurance. By depositing with one bank – Mission Community Bank – you receive full FDIC insurance from many.

* This is a brief summary of some of the FDIC insurance rules. Depositors should consult with their legal advisers and with the FDIC web site prior to establishing different bank accounts or changing the title of an existing bank account to maximize deposit insurance.