With uncertain economic times such as these it is natural to have questions about your money and seek reassurance that it is safe. Farmers State Bank of Hamel is a well capitalized community bank with prudent lending practices. As a member of the Federal Deposit Insurance Corporation (FDIC), your money on deposit with us is automatically insured up to the limits set forth by the FDIC. The FDIC coverage has undergone significant changes and we at Farmers State Bank of Hamel want to provide you access to the tools and resources necessary to understand how your insurance works.
The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to provide insurance protection for depositors of failed banks and to help maintain sound conditions in the nation's banking system. The FDIC is an independent agency of the U.S. Government. Since its inception, the FDIC has responded to thousands of bank failures and no depositor has ever lost a penny of their insured deposits.
The FDIC has numerous consumer resources available online at FDIC.gov. They have also launched a tool at myfdicinsurance.gov that is designed to help consumers learn about the benefits and limitations deposit insurance mean for you.
What is insured by the FDIC?
All types of deposits held at Farmers State Bank of Hamel are covered by FDIC insurance including:
- Checking Accounts
- Certificates of Deposit (CDs) including those invested in IRA's
- Outstanding Cashier's Checks, Money Orders, and Interest Checks issued by Farmers State Bank of Hamel
Contents of Safe Deposit Boxes are not covered by FDIC insurance. However, in the event of a bank failure, you would still have access to your box and the contents within.
What amount of insurance coverage do I have for my accounts?
In an effort to stabilize the economy and instill confidence in our nation's financial system, the FDIC insurance coverage was permanently raised to $250,000 per depositor. After June 30, 2010, funds at Farmers State Bank of Hamel held in noninterest bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee program, but will be insured up to $250,000 under the FDIC's general deposit insurance rules.
Coverage Over Basic Insurance
The FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. It is possible to qualify for more than the current $250,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. The ownership categories are (1) single, (2) joint, (3) revocable trust (informal revocable trusts such as Payable-on-death accounts and formal revocable trusts such as living/family trusts created for estate planning purposes), (4) irrevocable trusts, (5) certain retirement plans, (6) employee benefit plans, (7) business (corporation, partnership, unincorporated associations), and (8) government.
Where can I go if I still have questions?
- You can call FDIC toll-free at 1-877-ASK-FDIC (877-275-3342) from 8:00 am until 8:00 pm (Eastern Time) or contact them online at www.fdic.gov.
- You can also call Farmers State Bank of Hamel at either our Hamel Office 763-478-6611, or the Corcoran Office 763-420-2025. We would be happy to answer any questions you may have.
