Looking for Higher FDIC Coverage

Contributed by: Patrick Straka, Chief Financial Officer

Reciprocal Deposit

How would you like big bank safety and security but with the convenience and service levels of a community bank? Sometimes being a smaller bank can be perceived as a problem for depositors when it comes to safety and security or for businesses and municipalities with investment policy requirements for larger deposits above $250,000 FDIC insurance limits. That NO LONGER is that a limiting factor at CIBM Bank! With enhanced systems and technology we are able to vastly increase your FDIC deposit insurance coverage at the bank from $250,000 to $25,000,000 or 100 TIMES standard amounts on deposits you place in a new CIBM Bank Money Investment Deposit Account Service (MIDAS) account.

Something like “Wait, what? Really, come on.” Is a typical first response, but it really is quite simple, safe, and easy – we help you get more FDIC insurance coverage and use technology to do most of the work so you don’t have to. In summary, the deposit account has all the convenience and ease of use as any other at CIBM Bank, the extra FDIC insurance coverage happens behind the scenes.

When you make your MIDAS deposit, using technology and a trustee we split the deposit into amounts of $250,000 or less and place those deposits or ‘sweep them’ into qualifying FDIC insured banks. That same process happens every single day the funds are on deposit and you are not limited by the number of days it can happen in a month unlike a Money Market Account. The trustee maintains the transaction records between banks and CIBM Bank maintains the confidentiality of your name and personal information – the other banks providing the additional FDIC insurance coverage will not know your name, address, tax identification number, account number or any other personal information so you can rest assured your money and your confidential information are safe.

You might wonder “hmmm, but when can I get my money back from those other banks and how do I do that if I don’t know who or where they are?” We have a very simpler answer … “instantly through your MIDAS account at CIBM Bank”. Your full funds availability is no different than the same deposit you make in any other CIBM Bank checking or money market account. Those balances at the other banks will be visible to you and show full availability on your MIDAS account at CIBM Bank – this is considered your lead account. You will never need to contact or write a check off those other banks - you simply withdraw funds through your lead MIDAS account at CIBM Bank, and we retrieve the money instantly and automatically for you so no extra work is needed on your part. You will even get a separate statement monthly summarizing how much money is at each of the other banks and you will never need to correspond with the other bank.

Let’s do a final run down for CIBM Bank’s MIDAS deposit:

We know you have worked hard for your money, and we believe you should expect excellence when it comes to security, ease of use and confidentiality – with the CIBM Bank MIDAS we help you achieve these goals.

At CIBM Bank we understand your hard work, your commitment and the financial decisions you have to make on daily basis -- whether that be for your business, or buying or maintaining a home, or just your day-to-day financial-related needs. We also understand there are times you just need some help. And that’s what we’re here for. To help makes things a little easier for you, to provide experts who can walk you through the variety of options to best meet your particular needs, and to provide just a little more peace-of-mind. Call us or visit www.cibmbank.com

The information expressed is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual. CIBM Bank does not provide tax, legal, or accounting advice. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult your own tax, legal, and/or accounting advisors before engaging in any transaction.