TB&: Bank the safest place for your money
Published 6:55 pm Thursday, October 23, 2008
Gary Guthrie, president & CEO of Troy Bank & Trust said, “We, along with many other area banks, have received questions from customers regarding the safety of their deposits.” To help customers understand the strength of the banking industry, Guthrie highlighted the following facts:
Banks are equipped to handle economic shifts. Banks have significant capital, or a rainy-day fund, on reserve for tough economic times. This is a bank’s first line of defense to cover any losses.
No customer has ever lost a penny in insured deposits. The FDIC protects consumers from losing their money if their FDIC-insured bank fails. Even better, the agency has temporarily raised its coverage amount from $100,000 to $250,000 through December 31, 2009. There are legal and safe ways to get even more FDIC coverage depending on how you set up your accounts.
The majority of banks are healthy. Most banks have been around for decades and are likely to be around for many more. Troy Bank & Trust was established in 1906 and is stronger than ever. As stated by the Alabama Superintendant of Banks, John Harrison, “there has not been a bank failure in the state of Alabama for 21 years and we do not anticipate any failures for years to come.”