| Several unprecedented market events have significantly shaken American consumer confidence. If you’ve followed current events, you’ve no doubt heard the troubling news coming out of the financial world. Consumers, businesses and investors are concerned because we have all witnessed the failure or sale of institutions that were long thought to be bedrocks of security. All this leads to a perfectly reasonable question. What about my bank?
We can assure you that your deposits are very safe at TD Banknorth, but that may not be enough to address your concerns, and we don’t blame you. You need to know who’s minding the store, so to speak, especially in light of the recent turmoil in the financial sector. We’ve tried to anticipate some of your concerns in order to address them as a whole with the assurance that at anytime, we’d be more than happy to talk to you about any individual concerns over the phone or in person, at any of our branches.
Is TD Banknorth a safe place to bank?
- TD Banknorth and TD Bank (formerly known as Commerce Bank) are trade names of TD Bank, N.A., a part of TD Bank Financial Group (TDBFG). TDBFG is one of the most financially sound financial services companies in North America.
- Barron’s 1 magazine calls TD Bank Financial Group one of the best companies in North America – a company that is “delivering the goods for shareholders” in an especially tough market, ranking it ahead of every other bank in North America.
- TD Bank Financial Group and its businesses did not invest heavily in subprime mortgages. Neither did TD Banknorth. And we still do not. Neither TD Banknorth nor TD Bank Financial Group is offering subprime mortgage products. Nor are we offering the sort of complex loan products offered by other banks. In fact, our conservative approach to lending is the reason we’re one of the very few banks in North America to avoid these problems.
- TD Bank N.A. is a member of FDIC and all qualifying deposits are covered by FDIC deposit insurance.
How safe are my deposits?
- Your bank deposits are not only safe with us, they’re covered by FDIC deposit insurance up to the maximum allowable by law.
- If you have $250,000 or less in combined TD Banknorth and TD Bank deposits, you do not need to worry about insurance coverage – all of your deposits are insured through December 31, 2009
- The FDIC has implemented a new program that will provide full deposit insurance coverage for all funds in non-interest-bearing transaction deposit accounts through December 31, 2009. As an example, personal and business checking accounts that do not earn interest are fully insured for the entire amount in the deposit account. The new insurance coverage is over and above the $250,000 in coverage already provided.
- If you have more than $250,000 in deposits with us, your funds may still be insured depending on the type of account you have and the ownership category. We cannot provide specific advice to you, but we can provide you with the information and tools necessary to help you understand the extent of your coverage. Visit the FDIC website and use their calculator at http://myfdicinsurance.gov to find out more.
How do I maximize my coverage?
- The FDIC insures all deposits at our bank, including checking, interest checking, savings, money markets and CDs, up to the insurance limits. You may qualify for more than $250,000 in coverage if you own deposit accounts in different categories or deposits in non-interest-bearing transaction accounts. Learn more about FDIC Deposit Insurance Coverage.
I’ve heard specifically about problems with Money Market funds. Are my Money Market accounts safe?
- Money Market accounts, like the ones sold at TD Banknorth and TD Bank, are covered up to applicable limits by FDIC insurance. Money Market funds are mutual funds which are not covered by FDIC insurance. (Certain Money Market funds are covered under a separate program by the U.S. Treasury. Please visit www.USTreas.gov for additional information.) Whether your deposits are specifically covered depends on how they are registered and how much you hold in your accounts. Visit the FDIC website and use their calculator to ensure you’re covered: http://myfdicinsurance.gov. Or, learn more about Money Market Accounts and Money Market Funds.
Are my business accounts covered in the same way as my personal accounts?
- In general, business accounts receive $250,000 in FDIC deposit insurance coverage, including municipalities. However, funds owned by a business that is a sole proprietorship are not insured under this category. Rather, they are insured as the single account funds of the person who is the sole proprietor. Again, the FDIC EDIE calculator is a good source of information: http://myfdicinsurance.gov.
- The FDIC has recently announced a new program entitled the Temporary Liquidity Guarantee Program that will guarantee all newly issued senior unsecured debt of eligible banks, thrifts and certain holding companies. Read more about FDIC Deposit Insurance Coverage.
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