From the President: FDIC Insurance

President Tom Larson

President Tom Larson

From Tom Larson

As the president of your locally owned community bank, I like to remind customers that no one has ever lost a penny in an FDIC-Insured account. With all of the economic news that is on television, radio, newspaper and online, it is easy to forget the strength and security that FDIC Insurance provides. Earlier this year, consumers gained even more confidence as the standard maximum deposit insurance amount was increased permanently. There’s never been a better reason to put your money in the bank.

According to information from the Federal Deposit Insurance Corporation, on July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.

The temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013.

“With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013,” said FDIC Chairman Sheila C. Bair. Iowa State Bank welcomes your questions about FDIC Insurance and we invite consumers to contact us by stopping by one of our offices, or by calling us Toll Free at 800.ISB.3595. Due to the nature of e-mail, we do not recommend its use for personal financial questions.

Your Iowa State Bank remains well-capitalized with capital and reserves of $27,998,009.00 as of June 30, 2010. That’s 27 million reasons to sleep well at night. For a statement of financial condition, see our website.

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