All Banks Are Not Equal

All Banks Are Not Equal

Why research the viability of our bank? If all banks are FDIC (insured by the government), wouldn’t your money be safe in any one of them? Even if they are federally insured, there are significant advantages to knowing where your bank stands. If your bank fails, it is possible for you to experience many unwanted issues, such as the return of any outstanding checks you may have.  This could have a domino effect on every area of your life, especially your relationship to those who trust that your check will be honored. Knowing the star-rating of any banks or credit unions at which you have deposits is the simplest and most reliable way to decide where you place your money. In other words, do your due diligence before choosing a bank or credit union.

As far as the results are concerned, the most popular five-star rating system is readily understandable:

5 stars                    Superior

4 stars                    Excellent

3½ stars                Good

3 stars                     Adequate

2 stars                     Problematic

1 star                       Troubled

Star ratings are based on asset size, net worth, tangible capital ratio, risked-based capitol ratio, and year-to-date net income, to name a few, relying on data reported to federal regulators. Understanding the method used to ascertain these determinations on your financial institution can be daunting, but needless to say, there are independent institutions out there which are uniquely qualified to supply you with the information you need to make a well-informed choice. When it comes to your money, all decisions have great significance and are essential to your peace of mind. For more information Bauer financial ratings  please visit the link.