What is FDIC Insurance?

Safeguarding Your Finances: FDIC Insurance & the Community Banking Difference

When it comes to choosing a bank to entrust with your hard-earned money, the financial landscape can seem overwhelming. With numerous options available, it’s essential to understand the importance of protecting your dollars through safeguards like FDIC insurance and by trusting a community bank with a high level of stability and soundness. Here’s what you need to know about FDIC insurance and how it’s part of a bigger picture of responsible management and attentive service.

What is FDIC Insurance?

FDIC stands for the Federal Deposit Insurance Corporation. It is an independent agency of the United States government that provides deposit insurance to depositors in U.S. banks (people, like you, who keep money in bank accounts). FDIC insurance is designed to protect folks against the loss of their deposited money, providing peace of mind by ensuring that their money is safe.

It’s important to note that not all banks have FDIC insurance. Certainly, Home Federal Bank of Tennessee is proudly FDIC insured–one of many factors in our comprehensive approach to ensuring the security and soundness of your hard-earned dollars. But it’s about much more than investing in insurance for our customers; it’s about knowing and understanding the nuances of that coverage and working with our customers, so they’re taken care of.

Ensuring your Dollars are Covered

The stipulations around FDIC insurance are such that banks must invest their time and expertise in working with customers to structure their accounts correctly. At Home Federal Bank of Tennessee, accounts are insured for up to $250,000 per depositor for each account ownership category. Joint accounts, say between spouses, can be covered for up to $500,000. And if you have to protect still more than that, there are additional strategies that can be employed to guarantee the security of larger dollar amounts.

Our approach is tailored to the unique needs of every customer. As a long-standing community bank that isn’t beholden to shareholders, we’re able to put customer needs first, and we know those needs can differ over time and based on the uniquely individual circumstances of each business, person, and family we work with.

“Our close relationships with our clients have afforded us the opportunity to observe the care, respect, and first-class service provided by Home Federal’s lending team,” says Kane Hauri, President and Owner of George W. Reagan Company, an established commercial construction company with a nearly 100-year reputation in its industries and a long-standing commercial client of Home Federal Bank of Tennessee. “When the time came for my wife and I to purchase GWR,” explains Hauri, “I did not look anywhere else, even though we had other offers. I am sold on Home Federal Bank of Tennessee’s honesty, integrity, professionalism, and the expeditious manner in which they handled our multilayered transaction.”

For companies like George W. Reagan, the ability to manage and protect accounts over time–including operating dollars, business assets, and more–is absolutely essential.

Putting Customers First

While it’s a good idea to work with a bank committed to helping you structure your accounts and assets based on your unique needs, it’s important to know that you don’t have to purchase deposit insurance or opt in to receive coverage when you’re working with an FDIC-insured bank like Home Federal. When you open an account (that meets the appropriate criteria) with Home Federal you are automatically covered.

It’s also important to note that Home Federal Bank of Tennessee’s stability extends far beyond its long-standing customer base and status as FDIC-insured. Our organization has also achieved high ratings from Bauer Financial for over 30 years, meeting strict federal regulatory capital requirements across a number of categories–including liquidity.

For Home Federal, the bigger picture is one of consistently responsible management and security and soundness over time. This means prioritizing customers and community over shareholder interests–all the way down to keeping customers informed about the status of their FDIC-insurance coverage and account structures. And, most importantly, ensuring your money is safe and secure.

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