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Federal Deposit Insurance Corporation FDIC Insured - Backed by the full faith and credit of the U.S. Government.

How Safe is Your Money with a Bank?

Understanding FDIC Insurance and How it Protects Your Deposits


Several banks nationwide have been closed by the Federal Deposit Insurance Corporation (FDIC), which has significant raised concerns among individuals regarding the safety of their bank accounts. However, as a reputable financial institution, FSB wants to assure our customers that their financial safety and security are our top priority.

Read More Contact FSB

Table of Contents

  1. What Makes FSB Different?
  2. What Causes Bank Failures?
  3. What is FDIC Insurance & How Does it Work?
  4. What Accounts Are Covered By FDIC Insurance?

What Makes FSB Different?

With one of the strongest capital positions of any bank or credit union in the Eastern Iowa area, we are confident in our ability to protect our customers' assets. In addition, our relationship-based banking business model reflects our commitment to our community, where we live, work, and worship. As such, we are dedicated to assisting our customers and all community members in achieving financial wellness through education and guidance.

Our knowledgeable bankers are well-versed in FDIC insurance coverage and are eager to help educate any customer or community member who may have questions. Call us directly at 319-377-4891 to get in touch with a banker today.

What Causes Bank Failures?

Bank failures can arise from various factors, and mismanagement of funds is a prevalent cause. Banks that engage in risky practices or fail to manage their assets and liabilities efficiently may find themselves in financial distress. For instance, a bank that extends excessive credit to borrowers unlikely to repay their loans may jeopardize its financial position, or a bank that invests heavily in speculative investments may suffer significant losses that may prove irrecoverable.

However, at FSB, we prioritize the security and protection of our customer's assets, and maintaining one of the most substantial capital positions of any bank or credit union in the Eastern Iowa area is a testament to this commitment. We focus on ensuring that your funds are secure and accessible and take pride in providing reliable financial services to our customers.

What is FDIC Insurance?

In addition to the vaults, security guards, and fraud protection measures that banks use to keep your money safe, a higher level of security is protecting your funds – the FDIC or Federal Deposit Insurance Corporation.

During the Great Depression, the FDIC was created by the Federal Banking Act of 1933. Congress wanted a mechanism to guarantee the safety of deposits in member banks. The FDIC is an independent U.S. government agency that maintains stability and public confidence in the financial system by protecting depositors of insured banks against the loss of their deposits if a financial institution fails.

How Does FDIC Insurance Work?

The FDIC's supervision program promotes the safety and soundness of FDIC-supervised financial institutions, protects consumers' rights, and promotes community investment initiatives. FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the insured bank's closing date, up to the insurance limit, capped at $250,000.

What Accounts Are Covered By FDIC Insurance?

Fortunately for consumers, thousands of financial institutions, including Farmers State Bank, are FDIC-insured. The FDIC insures certificates of deposit and money market accounts, along with traditional checking and savings accounts. Some items that are not FDIC-insured include mutual funds, safety deposit box contents, and annuities.

It is possible to qualify for more than the current $250,000 in coverage depending on the type of account and ownership category; you should ask your banker about your specific situation or visit the FDIC for more information. Call us directly at 319-377-4891 to get in touch with a banker!

Helpful Links

Here are some helpful resources to help answer more of your questions!

Understanding Deposit Insurance FDIC Deposit Insurance FAQs FDIC Calculator

Sources: https://www.fdic.gov/about/history/

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