Your Money is Safe with Us
The news of the collapse of Silicon Valley Bank, among others, has captured the headlines across the country this week causing Americans to pause a moment and wonder if their money is secure. Our customers can continue to bank with confidence knowing their money is safe because it is insured by the Federal Deposit Insurance Corporation (FDIC), and because The Bank of Elk River has sound lending practices and is financially stable.
FDIC, which started in 1935, covers each depositor’s account up to $250,000 per account owner. Since the FDIC was founded, no one has ever lost a penny of FDIC-insured funds. For customers with more than $250,000 to deposit, The Bank of Elk River offers CDARS and ICS services through IntraFi. These services allow a customer to submit funds to us, and then we use CDARS/ICS to divide their deposit into amounts under $250,000 and place them in deposit accounts at other network banks. This ensures your entire deposit is FDIC-insured.
“Depositors’ funds remain secure in community banks because these institutions are vested in their communities, promoting financial stability and prosperity,” said the Independent Community Bankers of America (ICBA) President Rebeca Romero Rainery in a recent press release. “They operate under a safe, sound, and relationship-based banking model that has withstood economic cycles.”
Furthermore, community banks, like The Bank of Elk River, operate under an entirely different business model than large financial institutions such as Silicon Valley Bank. We are well-capitalized, have diversified loan growth, strong capital ratios, and an effective risk management process in place. We also know our customers – they are our neighbors, local business owners, and friends.
For more information about FDIC coverage, visit the FDIC’s website at fdic.gov/deposit.
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