Something to Think About - Endorsing A Check

At one time or another, we’ve all been taught how to properly endorse a two-party check. Endorsing a check means to sign the back of it in order to cash it, deposit it or sign it over to someone else. Learning to endorse a check is an important early lesson in personal finance. Typically, when endorsing a two-party check to deposit into your account, we’ve all been told to write “for deposit only to account #12345”.

Nowadays, with the threats of identity theft and stolen account numbers, this may not be such a good way to endorse a check. Think about it, someone writes you a check for a product or service you provided, say you sold your car. So you take that check to your bank and want to deposit it. You endorse it by writing “for deposit only to account #12345” on the back of the check. (The person’s check who you may not even know that well!) When that person receives their cancelled checks in a statement they will now have your account number and your signature.

The best way to endorse it would be to simply put “for deposit only” and then your signature.

We know there are many other ways for thieves to get your bank information, but this is one simple thing that can easily be done as an ounce of prevention.

A BANKER'S VIEW OF WHAT'S HAPPENING OUT THERE

Those of us who lived through the turbulent economic times of the early 1980s remember when then-Fed Chairman Paul Volcker slowed the growth of the US money supply to defeat inflation which had caused NY Prime to go to 21%. That unilateral action was swift and left agriculture and other sectors of the economy that depend upon borrowed money and exports in a lurch. Today, we are faced with the high level of the Bush Administration deficient spending, and add to that the Obama stimulus package, leading to a suspicion that inflationary pressure might be right around the corner, with tightening of the money supply by the Fed’s Ben Bernanke soon to follow. Will history replay itself? I recently sat in on a webinar put on by ICBA Securities and came away convinced that history will not repeat itself. Let me share some of the highlights.

The Gross Domestic Product (GDP) is still shrinking although it’s first quarter 2009 level of -5.5% is slightly better than 4th quarter 2008. Unemployment is at 9.5% and is expected to climb to over 10%, although there are 109,000 fewer initial jobless claims this quarter vs. last (674,000 vs. 565,000). Continuous jobless claims have not come down yet, peaking at 6,702,000. All of housing statistics are what you’d expect with housing starts at the lowest level since they began keeping records in 1969. The one favorable chart is that the supply of new homes for sale peaked in January of 2009 at 12.4 million and now sits at 10.2 million, but neither number includes foreclosed properties. The Institute for Supply Management measures such things as new orders, inventory levels, exports, imports, and backlog orders. Their composite index has improved by 4.7% over the past month. Businesses are still liquidating inventories and will eventually need to rebuild their stock of goods once the economy turns around.

The bottom line in all this is as follows: A)There are no signs of inflation for at least two years as the US Personal Consumption Expenditure index and Consumer Price Index (Core) are at 1.8% and are headed to 1.5%. Last month oil was priced at $69/barrel compared to its current level of $60. The question is now will it get to $50. B) Savings rates have spiked to 6.9% meaning that Americans are finally getting serious about making it through these hard times. C) The economy should bottom out during 2009 with a very slow recovery process. The restructuring of the American auto industry, for example will take years as car companies develop new technologies for more efficient cars and determine the proper level of production. In the past five years, GM, Ford and Chrysler simply built too many cars that were too expensive and it will take time to work all these things out. D) Interest rates into the foreseeable future will remain low since there is a surplus of liquidity and the demand for money is not expected to increase for many, many months.

The bond trader that put on the seminar said, “We have been going down so long, that small drops in the key numbers, look like up.” Right now, American consumers are saving their money, while living in a home that might have a debt on it that is close to its value. Just like the painful lessons that we learned in the 1980s, if we are patient and have sufficient capacity to weather this storm, the future will eventually be brighter.

David W. Johnson, Chairman

Updated Look Coming Soon to Internet Banking!

For the past couple months we've been working on a new template for Reliabank's internet banking webpage. In about a week we will be launching the new page and we hope those of you that use our Internet Banking website will like the user friendly, updated look.

As always, we welcome comments and hope that you will share with us, suggestions on making it even better.

Lisa
Marketing Director
lisal@reliabank.com

Independence Day

Main Street America. It's where community banks work every day to ensure the American dream. As a community bank we are the backbone of American economy, providing local business loans, farm loans and home loans. We are helping Americans borrow for what they need and invest in their future.

Community banks are strong, safe, secure and stable - our focus is on what is best for our customers and communities. It's our way of doing business, and has been since 1920. Now, more than ever, community banks like Reliabank offer what America needs most - stability and security.

With all the turmoil on Wall Street, isn't it nice to be reminded of what Main Street America is all about?

From all of us at Reliabank, we wish you a safe and happy Independence Day!

FDIC Money Smart Podcast Network: Listen Now General

FDIC Money Smart Podcast Network: Listen Now General

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Grill'n & Chill'n Promo to Begin July 1

Cook up convenience with your Reliabank Shazam debit card this summer with the “Grill’n & Chill’n” campaign! Start Grill’n & Chill’n this summer by using your debit card to make purchases. It’s the easiest, fastest, safest, and most convenient way to pay. So add some summer sizzle by using your debit card!

When you use your debit card to make purchases July 1 through September 30, 2009, you will automatically be entered for a chance to win great summer prizes!

Grand Prize: Gas grill and $150 worth of Omaha Steaks® (total value $500)

First Place Prize: Rolling cooler, insulated tumbler set, and $50 Dairy Queen® gift card (total value $300)

Monthly Winner: Picnic Basket (total value $50)

The more you use your debit card, the more chances you have to win! If you don’t have a debit card we encourage you to stop by any Reliabank location to sign up for one. It's Free!!

RELIABANK HAS PARTNERED WITH SHAZAM TO OFFER ONE LUCKY RELIABANK CUSTOMER THE CHANCE TO WIN A $50 DAIRY QUEEN GIFT CERTIFICATE EACH MONTH OF THE PROMOTION!

Visit www.shazam.net/rules_grillnandchilln.html for official rules and complete contest details

FDIC Coverage Extended to 2013

On May 20, 2009 the FDIC announced that deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)

The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured institution. The chart below assumes that all FDIC requirements are met - for details on the requirements, go to www.fdic.gov/deposit/deposits


FDIC Deposit Insurance Coverage Limits (Through December 31, 2013)
Single Accounts (owned by one person)
$250,000 per owner
Joint Accounts (two or more persons)
$250,000 per co-owner
IRAs and other Certain Retirement Accounts
$250,000 per owner
Revocable Trust Accounts
$250,000 per owner per beneficiary up to 5 beneficiaries (more coverage is available with 6 or more beneficiaries subject to specific limitations and requirements)
Corporation, Partnership and Unincorporated Association Accounts
$250,000 per corporation, partnership or unincorporated association
Irrevocable Trust Accounts
$250,000 for the non-contingent, ascertainable interest of each beneficiary
Employee Benefit Plan Accounts
$250,000 for the non-contingent, ascertainable interest of each plan participant
Government Accounts
$250,000 per official custodian