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Within this past week, many individuals have unfortunately had to ask themselves this question. With the failure of two large and highly specialized institutions, you may be concerned about the strength of your financial institution, as well as the security of your deposits. Rest assured, Community Bank of Parkersburg maintains strong capital ratios and access to ample liquidity; however, you may still have some lingering questions on the security of your deposits. Let’s walk through FDIC insurance.

FDIC deposit insurance protects bank customers in the event that an FDIC-insured depository institution fails. This insurance is automatic for any deposit account opened with an FDIC-insured depository institution. These deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category. 

The most important question to ask yourself, “Is my bank insured?” This information can be found using the FDIC's BankFind Tool. This is a great tool to use as research even before you establish a banking relationship. 

Secondly, it is important to have knowledge of what accounts are eligible for FDIC insurance. Checking accounts, NOW (Negotiable Order of Withdrawal) accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs) are eligible for FDIC insurance. The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if you purchased these products from an insured bank or savings association.

The last question to ask yourself is, “How much insurance coverage do I have?” A common misconception is that a customer is only insured up to $250,000 in any one financial institution. You may qualify for more than $250,000 in coverage at one insured bank if you have deposit accounts in different ownership categories. The most common ownership categories are single accounts, joint accounts, revocable trusts, and certain retirement accounts. The FDIC has a great Insurance Calculator that helps you determine exactly how much insurance you have at a single insured bank. Our Customer Relationship Specialists and Branch Managers can also help you navigate this tool and structure accounts in order to maximize your insurance benefits. 

We at Community Bank value your trust in us to keep your hard-earned money safe. If you have any questions about FDIC insurance, please reach out to any of our locations. 

Susan Barber
President and CEO