How We're Protecting Your Deposits
In response to the failure of Silicon Valley Bank, Prevail Bank’s President and CEO Nathan Quinnell assured, “Prevail Bank is a very well capitalized and diversified bank with very little ties to risky industries like Silicon Valley Bank had with technology companies. We invest many of our deposits into local businesses, home loans, and government guaranteed investments. Our customers’ deposits are FDIC insured and if they hold more than the $250,000 insured amount, there are other options for them to have the additional amounts FDIC insured as well.”
Also noted by the Wisconsin Bankers Association’s Rose Oswald Poels, “What happened with Silicon Valley Bank is a very unique situation. The bank was heavily connected to the tech sector, which made it vulnerable to the booms and busts of that sector. Less than 10% of its deposits were insured as they were very large deposits (largely from venture capitalists that deposited tech investment money in the bank). In contrast, Wisconsin banks have a far higher percentage of insured deposits. Because Silicon Valley Bank was heavily connected to the tech sector — both on the loan and deposit side — it was not well diversified. Again, this is a stark difference from Wisconsin banks of all sizes, which are much more diversified across different business and personal sectors. The banking system overall and Wisconsin banks are safe, sound, and resilient.”
If there are any additional questions, we encourage you to come in and talk with a Prevail Bank team member. We are here as a trusted advisor and want to help with any concerns you may have.
What is Member FDIC Insurance?
Your accounts are insured through the FDIC (Federal Deposit Insurance Corporation). More information on FDIC insurance is available by visiting www.fdic.gov or www.fdic.gov/edie. The Edie website has an estimator of deposit insurance coverage based on the information you input into the calculator. It also has a Frequently Asked Questions section which covers a wide variety of scenarios.
Each individual depositor is insured to at least $250,000. Additional FDIC insurance is available through account titling and designating Payable on Death (POD) beneficiaries. Generally, a depositor may be insured for separate $250,000 coverage for each individual/POD beneficiary. IRA accounts are insured to $250,000 separately from all other funds of the depositor.
What Does the FDIC Cover?
- Checking accounts.
- Savings accounts.
- Money Market deposit accounts (MMDAs).
- Certificates of Deposit (CDs).
- Negotiable order of withdrawal (NOW) account.
- Cashier's check, money orders, and other official items issued by a bank.
Learn more here.
Additional Resources
IntraFi® Network Deposits
With ICS® or CDARS®, you can access multi-million-dollar FDIC protection on deposits placed in demand deposit accounts, money market deposit accounts, and CDs—all through our bank.
Learn more about our ICS® or CDARS® services by visiting the Intrafi Network website, by contacting a Prevail Bank Representative, or by watching our video below.
Deposit placement through CDARS or ICS is subject to the terms, conditions, and disclosures in applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through CDARS or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and the IntraFi hexagon and IntraFi logo are service marks, of IntraFi Network LLC.
