Winter 2009 Newsletter
- FDIC is well-equipped to handle bank failures and protect customers
- Online or offline, courtesy counts!
- One-touch your way to online banking
- Direct deposit is safe, easy and reliable
- Events Calendar
FDIC is well-equipped to handle bank failures and protect customers
Although our economy is slowly beginning to recover, you have
probably seen or heard news articles about FDI C-insured banks failing,
and you may wonder if customer deposits are truly safe. You may also
wonder what happens to customer accounts when a bank does fail.
Customers can be assured that deposits with FDI C (Federal Deposit
Insurance Corporation) insured banks are protected up to $250,000 to
the year 2013. This protection comes about because the banks pay a
premium to the FDI C, and the FDI C is backed by the full faith and
credit of the U.S. Government. During the first six months of this year
the FDI C had approximately $32 billion in reserves and another $10.4
billion in its insurance fund to cover insured depositors. At the end of
the year, the Corporation will collect another $45 billion in premiums
from the nation’s banks.
The FDI C has its finger on the pulse of the banking industry and
it can gauge how many failures may occur,
and how much money it needs to cover
those expenses up through 2013. Over
the 75 years the FDI C has been protecting
consumers, not a single depositor has ever
lost money in a federally insured account.
Banks fail when they lack liquidity
or capital, or when there aren’t enough
operating funds to cover expenses, or there
isn’t enough money to back up the bank’s
business. At that point a banking regulator
closes the bank and the FDI C either merges
the bank with another bank that is stable,
or it takes over the bank and closes it, then
sends the accounts to a financially sound
bank nearby. The Corporation looks after the paper trail, making sure
the new bank has all of your records and that you have access to your
money.
Hopefully our economy is back on track and we will see fewer
stories in the news about bank failures. But it’s good to know as long
as you bank with FDI C insured financial institutions, your money is
safe up to $250,000, and if your bank does fail, the FDI C is there to make
the transition painless for customers.
You could liken our economy to a row of dominoes set on end.
People need to borrow money for their businesses, homes and cars.
In a weak economy sometimes they can’t pay those debts and their
dominoes begin to topple. It’s the job of banks to put money into the
economy by lending it, but when they aren’t paid back, their dominoes
begin to topple. That doesn’t mean banks should stop lending, that
would be worse for the economy than the bank failures we are seeing.
It’s good to know, however, that with the FDI C, individual depositors
will not lose.
Mark L. Luderman
President/CEO
Online or offline, courtesy counts!
The Internet is a wonderful thing that allows us access to
a world of information, financial services, our friends and
family members, and even people we don’t know well. For the
majority of us it has become second nature to communicate via
the Internet, even though we may not know who we’re talking
to, and they may not know us.
“What we sometimes forget is that behind the screen is a real
person who deserves respect and courtesy,” said Linda Moore,
branch manager, Holland. “We may be `Instant Messaging,’
for example, with a customer service representative from a
company we deal with and if we’re not getting the answers we
want, forget that there’s a man or woman sitting somewhere
doing their best to help us.”
Sometimes people behave poorly online because they think
no one is watching. However, most computers and Internet
service providers keep logs of all activities, which can be used
to identify illegal or inappropriate behavior.
“Basically, you shouldn’t do anything online that you would
not do in face-to-face contact with a person or business,” Moore
said.
Here are a few guidelines:
Don’t be rude or use offensive language.
Don’t bully people, call them names, tell lies, publish
embarrassing photos or do anything to hurt someone.
Copying someone else’s work is plagiarism, whether it
is done on the Internet or not. Respect copyright laws for
downloading music, games, movies and software.
Don’t break into or “hack” into someone else’s computer.
Don’t use someone else’s password to access their accounts.
Don’t try to destroy someone’s computer or data by using
“viruses.”
“When you’re using the computer remember the Golden
Rule just as you do when you’re interacting with people in
other ways. `Do unto others as you would have them do unto
you.’ It’s that simple,” Moore said.
One-touch your way to online banking
by Debbie Stemper, Operations Manager
New devices such as Internet equipped cellular and smart
phones have been the motivation behind a new banking
technology: Mobile Banking. This technology allows
customers to have access to their bank accounts through their
hand held devices. These days, instant information is the
name of the game, and the Bank of Holland will soon offer its
customers this service.
Customers will be able to access their balances, view
transactions, transfer funds between accounts and receive
alerts on their hand held devices from just about anywhere.
With cellular based Internet access growing so quickly, Bank of
Holland felt it was critical to be able to provide Mobile Banking
to its customers. We do, however, want to ensure customer
information is secure, so the software we are adopting offers
many layers of security and advanced encryption.
When hand held device customers first sign on to Mobile
Banking using their
Bank of Holland Internet account, they will be asked to
enter their cellular phone number and create a PIN that will
safequard their account information. We are making this
sign-on process quick and easy by
giving simple on-screen prompts
for customers to follow.
Mobile banking will be FREE
to Bank of Holland customers.
We’ll let you know when
we are “live,” and you’ll
be able to go to www.
bankofhollandny.com on
your Internet-accessible
phone and start mobile
banking!
Direct deposit is safe, easy and reliable
If you don’t already have your Social Security or other
federal benefit check directly deposited to your account at the
Bank of Holland, this may be the time to make the switch.
“There are several reasons to have your check directly
deposited,” said Lynn McCabe, head teller, Holland Branch.
“It’s safer, easier, and gives you more control over your
money.”
With direct deposit you don’t have to worry about your
check being stolen and your signature forged so that someone
else can cash it. Direct deposit also helps protect you from
identity theft and, you are saved a trip to the bank to cash or
deposit your check in bad weather or if you just aren’t feeling
up to getting out.
Western New York also has many “Snowbirds” who will
appreciate the fact their money goes directly to the bank and
is accessible the same day of the month every month, from
almost everywhere.
“And, if you are concerned about the stability of Social
Security, you should also know that if everybody who
currently receives federal benefits switched to direct deposit,
taxpayers would save about $130 million each year,” McCabe
said. “Almost all of those savings stay in the Social Security
Trust Fund, which would benefit us all over the years to
come.”
It’s simple to change your Social Security or other federal
benefit check over to direct deposit. Simply stop by one of
the Bank of Holland branches and ask one of the tellers or
account representatives and we’ll be glad to help you with
the paperwork.
“We believe direct deposit is the best way to receive these
benefit checks so we’ll be talking about direct deposit to our
customers in the coming months. It’s just one more way we
can take care of our customers,” McCabe said.