Shared Reading: How to Know if a New Bank is Safe


A new bank has opened down the street that you've never heard of and you wonder if it's safe to deposit your money. Low interest rates on loans and high interest rates on money-market accounts are just some of the deals a new bank might offer to gain your business.

Look for the FDIC logo is the best way to know your money is safe. Why? The current state of the economy has made it harder for new banks to get that government approval.

If a bank is new, it's probably the safest bank out there. Derek Cunningham, managing director of Commerce Street Capital's bank development team, noted that if a new bank comes into being, it's done so after jumping over so many hurdles that you can be assured it's safe. "Of the 15 to 20 banks that opened in 2009," says Cunningham, "it literally took an act of Congress, prayers, luck, and the perfect board and CEO to get a charter last year."

Read the entire article at WalletPop and never be afraid to ask questions and research a bank before handing over your hard earned money.


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