This review is for: Green Savings
The first time that I called BankProvident to get some more information about their Green Savings account I was sent to voicemail. I felt like I had called somebody's house at dinner time. Not a great first impression, and needless to say, I didn't leave a message.
Because of their higher rates I decided to give them another shot a few days later. Thankfully, someone was home, and picked up - I was still skeptical, feeling burned by the voicemail, but turned out the customer service person was very helpful.
She told me a lot of the standard stuff that's important to potential new customers - soft credit check, minimum balance of only $10, solid rate. And of course she mentioned that it was a "Green Account" - which for this instance basically meant no paper statements.
What I found really interesting however was the Depositors Insurance Fund (DIF) which she mentioned. Apparently this is a private organization that insures depositors above and beyond the FDIC limits. Here are a few choice quotes from BankProvident's website:
"There are no forms, applications or special title requirements. You automatically receive this added insurance benefit when you hold deposits at The Provident Bank."
"DIF is a private, industry-sponsored organization with over $270 million in assets and $100 million in reinsurance. It is not backed by federal, state or local governments."
"No depositor has ever lost a penny in a bank insured by both the FDIC and DIF. The FDIC has always paid all deposits and accrued interest up to its insurance limits. DIF has always paid all deposits and accrued interest in excess of the FDIC’s limit."
Overall it sounds great, and I like to know my bank is going the extra step to protect me, although in this climate, the possibility of one or two institutions going under and wiping out the entirety of the DIF is actually not that unbelievable!
Posted by govygal -- March 18, 2009
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