Choosing the Right Bank – do you know their Safe and Sound rating?

When you are responsible for managing the money of other people, you are entrusted with more than just the earning potential of that money. The word “management” by definition encompasses handling, direction, and control. Choosing the right institution to aid you in this undertaking is crucial. When selecting a bank to deposit your association’s funds in, research more than just their interest rates.

Review the prospective banks Safe and Sound® rating at www.bankrate.com to assess the strength and stability of federally insured banks. While this is a good tool, it should not be the only resource you utilize.

  • Contact the potential bank and ask them the following questions:
  • Will the Association’s funds be insured by the FDIC or SIPC ?
  • What can they provide you in terms of interest rates and liquidity?
  • Request and review a detailed fee schedule. Fees can sometimes be hidden in the small print of account agreements; however, you want to be aware of these potential charges.
  • Ask how often statements will be sent. Keep in mind that these are needed for accurate and timely financial statement preparation.

These are just some of the factors that should go into the decision of money placement.

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