Deposit Insurance – Avoiding mistakes and miscommunication


Presented by: John Burnett                  

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Brian Krebs, the noted expert on online banking security, recently reported that a teller at his bank reminded him about how convenient online banking can be. When Krebs told the teller he was concerned about online security, the teller told him "Oh, you don't need to worry about that. If your account gets hacked or whatever, the FDIC protects you up to $250,000." Krebs asked her to check that with her supervisor, and the teller came back to him red-faced, apologizing for the misinformation. Are you confident your tellers wouldn't make such a mistake?

When the Dodd-Frank Act's temporary unlimited deposit coverage for non-interest bearing transaction accounts ended at midnight on December 31, 2012, there were some bank employees who believed that coverage amounts were dropping back to $100,000 per depositor, even though another Dodd-Frank provision had permanently increased the "Standard Maximum Deposit Insurance Amount" (SMDIA) to $250,000. And to this day, we know that there are bank customers who believe that the contents of their safe deposit boxes are covered by federal deposit insurance. Could your customer contact personnel be sharing some of this misinformation?

Of course you want your staff members to provide customers with accurate information on deposit insurance coverage, particularly when they are working with customers with significant balances who can benefit from knowing how insurance coverage works. But your employees should not take their responsibility to provide insurance information too far, both because changing accounts around and adding POD beneficiaries just to maximize insurance coverage can't be a substitute for responsible estate planning, and because there are some situations for which only the FDIC or NCUA can provide an authoritative answer.

Depositors, both bank customers and credit union members, need to have accurate information about deposit or share coverage from the FDIC and the NCUSIF. They need to know what Congress has done to affect that coverage. That's true in a stable economic environment; it is critical in times of economic uncertainty. When members or depositors ask your frontline personnel about insurance coverage for their funds, the message your employees deliver can be reassuring or heighten their concerns. It can lead customers to make enlightened choices, or mistakes.

The deposit and share insurance regulations are complicated. The Dodd-Frank Act made a significant change in deposit coverage amounts. Your customers and members may be working with outdated --and misleading -- information that could result in bad decisions. Join John Burnett for this important webinar on FDIC and NCUSIF coverage to find out what you should be telling customers now, as well as what to avoid.

In this session, John will review the basics of FDIC and NCUSIF insurance, including the newest changes affecting that coverage.

You'll learn about --
  • Ownership rights and capacities
  • The importance of bank branching and divisions
  • Deposits in insured branches of foreign banks
  • Updated information
  • Coverage when a deposit owner dies
  • What happened to special coverage for non-interest-bearing transaction accounts
  • The Standard Maximum Deposit/Share Insurance Amount (SMDIA/SMSIA)
  • Mergers and grace periods
  • The importance of account titles and records
  • Why insurance coverage should not be the "tail wagging the dog" of planning
  • Individual and joint account coverage
  • Revocable trust account insurance
  • Accounts held by agents, nominees, guardians, etc.
  • Annuity contract accounts
  • Accounts held by corporations, partnerships or unincorporated associations
  • Coverage of accounts of a depository institution as trustee
  • Irrevocable trusts
  • Retirement and other employee benefit plan accounts
  • Government depositors' accounts
Who should attend?
Front line and call center customer service personnel, marketing, and training staff.

About the Speaker: John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking. He is also a graduate of the BAI's and the Massachusetts Banker Association's Schools of Banking.

He joined Cape Cod Bank and Trust Company in 1971 and assumed his role as Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company. John joined Glia Group, Inc., and became a part of the BOL Team in June, 2004.

Mr. Burnett is a former member chair of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force, and has served on several ABA and Massachusetts Bankers seminar panels.

This program was recorded in its entirety in June 2013. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.

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  • Model: cd_fdic0413
  • Manufactured by: Glia Group, Inc.

This product was added to our catalog on Tuesday 05 March, 2013.

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