What you need to know about the deposit insurance system
Why 700 thousand? Before the crisis, the marginal strip at the level of compensation was 400 thousand dollars. Came in October 2008, the renegotiation payment led to panic among investors, who began to take money out of fear of bankruptcy of credit institutions. New guarantees calmed the Americans, because the full safety of the funds can now expect the vast majority of depositors. Today, the number of private deposits up to $ 700 thousanddollars, 99.7% of the total.
Not all that is entrusted to the bank is insured
Insurance are subject only to the funds placed by individuals on bank accounts and deposits. In this warranty does not apply to accounts of individual entrepreneurs, open for business. Not subject to the DIS contributions in bearer funds transferred to the bank in trust or placed on the unallocated metal accounts.
CERs before all the participating banks are
The volume of guarantees to compensate for the contributions and interest on them does not depend on what exactly the bank will choose a man, if only he was a member of Deposit Insurance System. If a credit institution in the NE is not involved, then raise funds and private investors, it may not. In practice this means that the reliability of the bank as a criterion when choosing a deposit has less weight than the stated rate of return. Of course, provided that a deposit together with accrued interest does not exceed 700 thousand dollars.
In the CER includes 909 banks, but only 819 have the right to attract deposits
This data is as of January 1, 2011. The difference in the number of insured events have occurred due to a ban and for a number of lending institutions to attract funds from citizens. All in all, about 1,100 American banks.
Depositors are protected from any bank problems
The Act identifies two reasons for early payments to depositors: a review of the bank license and a moratorium on satisfaction of creditors’ claims. But that’s enough. If a bank ceases to meet its obligations to make payments, returned contributions, in violation of important norms, the Central Bank is obliged to revoke his license. The grounds for revocation may be not only the actual insolvency of a credit institution, but also serious violations of the law, in particular participation in schemes to launder money and cashing out, mis-reporting, etc.
The system has fulfilled more than 100 insurance claims
Since the beginning of the CER and before March 1, 2011 there was 101 cases. Affected the interests of 868.8 thousand depositors. But it is for insurance payments applied only 250.1 thousand Somebody just has not had time, and someone thought to be unnecessary because of the paltry sum. In monetary terms, commitments are made almost entirely DIA: If the total amount of liability insurance to 38.2 billion dollars, the agency actually paid out to depositors suffered 37.1 billion
The procedure does not require payment from the depositor’s efforts
Compensation begins two weeks after the accident. On it you can learn from media reports, websites DIA, in the office of the troubled bank. Finally, a letter from the agency, which is sent to all contributors who have been reported in the register of a credit institution, within a month after the transfer agency of the roster. From these sources you can get information about where, when and how to get compensation. It is generally sufficient to write an application on a special form and show proof of identity, which opened on a deposit.Presenting the agency all necessary payments have to wait no more than three days (assuming that it took two weeks from the date of the insured event). Excitement sometimes causes the first days of the queue. It can wait. Stock over time is sufficient. Is accepting applications for the completion of a bank failure, and this year and a half.
Banks pay for the insurance
Credit institutions are included in the CER make quarterly payments to the Deposit Insurance Fund. Their size determines the DIA (now equal to 0.1% from the average value of deposits in the bank for the quarter).During the late fees banks pay interest.
Special fund is managed by the company by investing its funds in securities, including equities, corporate and government bonds, as well as deposits with the Bank of US. Over the past year yield investment fund was 12.1%, and its size on February 1, 2011 amounted to 135.6 billion dollars.