F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
• Taking Your Money on a Trip:
Safe Travels Financially
• 5 Common Misconceptions
About FDIC Insurance...
and the Real Facts
• How the FDIC Can Verify an
Unfamiliar Bank's True Identity
• Your Rights to Financial Privacy:
How to Stay Informed
ALSO INSIDE
Is It Time for Your Financial Checkup?
Tips that can help you fine-tune your money management
Fall 2014
• Taking Your Money on a Trip:
Safe Travels Financially
• 5 Common Misconceptions
About FDIC Insurance...
and the Real Facts
• How the FDIC Can Verify an
Unfamiliar Bank's True Identity
• Your Rights to Financial Privacy:
How to Stay Informed
ALSO INSIDE
Is It Time for Your Financial Checkup?
Tips that can help you fine-tune your money management
Fall 2014
2Fall 2014FDIC Consumer News
Any time of year, but particularly the
start of a new year, is a good time to
reflect on how you are managing your
finances and to consider whether you
would benefit from some changes.
Here’s a checklist of questions and
suggestions that can help you better
evaluate and meet your goals.
Saving
What are my current short-term
and long-term financial goals? Write
them down. They may include paying
off a debt, buying a home or a car, or
financing a child’s college education.
“With goals and target dollar amounts
in mind, you may be more motivated
to save money and achieve your
objectives,” said Luke W. Reynolds,
Chief of the FDIC’s Outreach and
Program Development Section.
Can I do better making automatic
transfers into savings? “Arranging for
your bank or employer to automatically
transfer funds into savings or retirement
accounts is a great way to build savings,
but don’t just set it and forget it,” said
Keith Ernst, Associate Director of the
FDIC’s Division of Depositor and
Consumer Protection in charge of
consumer research. “Ask yourself
whether you should increase the
amount you are automatically saving.”
Do I have enough money in an
emergency savings fund? The idea is
to cover major unexpected expenses
or a temporary reduction in income
without borrowing money. Figure out
how much you would need to pay for,
say, three to six months of essential
expenses (housing, transportation,
medical costs and so on). If you don’t
have that much money in a savings
account, start setting aside what you
would need. For anyone struggling to
build a “rainy day fund” or reach any
major savings target, setting up automatic
transfers is a steady way to work toward
that goal.
What about retirement savings? Start
by calculating how much money you
will need for retirement, perhaps by
using an online estimator. According
to the Social Security Administration
(SSA), most financial advisors say to aim
for a combination of Social Security
payments, pensions and personal
savings that equal at least 70 percent
of your pre-retirement earnings in
order to maintain your pre-retirement
standard of living. Even if you are just
starting out in the working world,
look into all your retirement savings
options, as they may come with
tax savings and employer matches.
And, if you are self-employed, find
useful information from the IRS
at www.irs.gov/Retirement-Plans/
Retirement-Plans-for-Self-Employed-
People. To estimate your Social Security
benefits when you retire, you can
contact the SSA at 1-800-772-1213 or
go to www.socialsecurity.gov/estimator.
Do my checking and savings
account choices meet my needs at
a reasonable cost? Start by talking to
a representative at your current bank
and/or visiting your bank’s Web site.
That’s because some banks only offer
certain deals in their branches but not
online, or vice versa.
“If you paid checking account overdraft
fees recently, look into ways to avoid
them, starting with keeping a closer eye
on your balance,” said Luke W. Reynolds,
Chief of the FDIC’s Outreach and
Program Development Section. “And
for money you don’t need in the near
future, remember that nondeposit
investment products may have the
potential for a higher return but you
can also lose some or all of the money
you invest.” He added that if you have
multiple accounts, consider whether
consolidating them may save you money
and time in monitoring transactions.
Taking Precautions
Am I adequately insured? Having
enough life, health, disability, property
and other insurance is essential to protect
your finances from a sudden shock.
Learn more at www.insureuonline.org,
a Web site from the National Association
of Insurance Commissioners. You may
find savings on your existing policies
by getting updated quotes from your
current insurer and comparing them to
quotes from at least two other companies.
Am I prepared financially in case of
a fire, flood or other emergency? In
addition to having your most important
possessions insured, ask yourself how
your most important documents
would be saved from ruin. For more
information, including how to assemble
a preparedness kit if you had only a few
moments to evacuate your home, read
tips from from FEMA — the Federal
Emergency Management Agency —
at www.ready.gov.
Is the personal information on
my computer and/or smartphone
properly protected? Use and
automatically update anti-virus software
and a firewall to secure your computer.
Arrange for your computer or phones
to regularly download and install
any “patches” (system updates) the
manufacturers produce to address
security weaknesses. For unlocking
your computer and mobile devices and
for logging into Web sites and apps,
create “strong” IDs and passwords with
combinations of upper- and lower-case
letters, numbers and symbols that are
hard to guess, and then change the
passwords regularly. “Try not to use the
same password at more than one site,”
advised Michael Benardo, manager of
the FDIC’s Financial Crimes Section.
“And if you feel a need to keep a
written list of passwords, which is not
recommended, try instead to use word
and number combinations that vary
slightly between sites, which may be
easier for you to remember.”
Am I taking precautions with my
personal information when I go to
social networking sites? Scammers
try to collect even minor details about
an individual, such as a pet’s name or
a high school mascot, in hopes that
they can use this information to reset
the passwords on a bank or investment
account and commit fraud. Social
media sites are places where criminals
can often find this information. For
guidance on limiting your information
at social media sites, see tips from the
Internet Crime Complaint Center at
www.ic3.gov/media/2009/091001.aspx.
For additional information about safely
using financial institutions’ social media
sites, see the Fall 2013 FDIC Consumer
News (www.fdic.gov/consumers/consumer/
news/cnfall13/socialmedia.html).
Is It Time for Your Financial Checkup?
Tips that can help you fine-tune your money management
Any time of year, but particularly the
start of a new year, is a good time to
reflect on how you are managing your
finances and to consider whether you
would benefit from some changes.
Here’s a checklist of questions and
suggestions that can help you better
evaluate and meet your goals.
Saving
What are my current short-term
and long-term financial goals? Write
them down. They may include paying
off a debt, buying a home or a car, or
financing a child’s college education.
“With goals and target dollar amounts
in mind, you may be more motivated
to save money and achieve your
objectives,” said Luke W. Reynolds,
Chief of the FDIC’s Outreach and
Program Development Section.
Can I do better making automatic
transfers into savings? “Arranging for
your bank or employer to automatically
transfer funds into savings or retirement
accounts is a great way to build savings,
but don’t just set it and forget it,” said
Keith Ernst, Associate Director of the
FDIC’s Division of Depositor and
Consumer Protection in charge of
consumer research. “Ask yourself
whether you should increase the
amount you are automatically saving.”
Do I have enough money in an
emergency savings fund? The idea is
to cover major unexpected expenses
or a temporary reduction in income
without borrowing money. Figure out
how much you would need to pay for,
say, three to six months of essential
expenses (housing, transportation,
medical costs and so on). If you don’t
have that much money in a savings
account, start setting aside what you
would need. For anyone struggling to
build a “rainy day fund” or reach any
major savings target, setting up automatic
transfers is a steady way to work toward
that goal.
What about retirement savings? Start
by calculating how much money you
will need for retirement, perhaps by
using an online estimator. According
to the Social Security Administration
(SSA), most financial advisors say to aim
for a combination of Social Security
payments, pensions and personal
savings that equal at least 70 percent
of your pre-retirement earnings in
order to maintain your pre-retirement
standard of living. Even if you are just
starting out in the working world,
look into all your retirement savings
options, as they may come with
tax savings and employer matches.
And, if you are self-employed, find
useful information from the IRS
at www.irs.gov/Retirement-Plans/
Retirement-Plans-for-Self-Employed-
People. To estimate your Social Security
benefits when you retire, you can
contact the SSA at 1-800-772-1213 or
go to www.socialsecurity.gov/estimator.
Do my checking and savings
account choices meet my needs at
a reasonable cost? Start by talking to
a representative at your current bank
and/or visiting your bank’s Web site.
That’s because some banks only offer
certain deals in their branches but not
online, or vice versa.
“If you paid checking account overdraft
fees recently, look into ways to avoid
them, starting with keeping a closer eye
on your balance,” said Luke W. Reynolds,
Chief of the FDIC’s Outreach and
Program Development Section. “And
for money you don’t need in the near
future, remember that nondeposit
investment products may have the
potential for a higher return but you
can also lose some or all of the money
you invest.” He added that if you have
multiple accounts, consider whether
consolidating them may save you money
and time in monitoring transactions.
Taking Precautions
Am I adequately insured? Having
enough life, health, disability, property
and other insurance is essential to protect
your finances from a sudden shock.
Learn more at www.insureuonline.org,
a Web site from the National Association
of Insurance Commissioners. You may
find savings on your existing policies
by getting updated quotes from your
current insurer and comparing them to
quotes from at least two other companies.
Am I prepared financially in case of
a fire, flood or other emergency? In
addition to having your most important
possessions insured, ask yourself how
your most important documents
would be saved from ruin. For more
information, including how to assemble
a preparedness kit if you had only a few
moments to evacuate your home, read
tips from from FEMA — the Federal
Emergency Management Agency —
at www.ready.gov.
Is the personal information on
my computer and/or smartphone
properly protected? Use and
automatically update anti-virus software
and a firewall to secure your computer.
Arrange for your computer or phones
to regularly download and install
any “patches” (system updates) the
manufacturers produce to address
security weaknesses. For unlocking
your computer and mobile devices and
for logging into Web sites and apps,
create “strong” IDs and passwords with
combinations of upper- and lower-case
letters, numbers and symbols that are
hard to guess, and then change the
passwords regularly. “Try not to use the
same password at more than one site,”
advised Michael Benardo, manager of
the FDIC’s Financial Crimes Section.
“And if you feel a need to keep a
written list of passwords, which is not
recommended, try instead to use word
and number combinations that vary
slightly between sites, which may be
easier for you to remember.”
Am I taking precautions with my
personal information when I go to
social networking sites? Scammers
try to collect even minor details about
an individual, such as a pet’s name or
a high school mascot, in hopes that
they can use this information to reset
the passwords on a bank or investment
account and commit fraud. Social
media sites are places where criminals
can often find this information. For
guidance on limiting your information
at social media sites, see tips from the
Internet Crime Complaint Center at
www.ic3.gov/media/2009/091001.aspx.
For additional information about safely
using financial institutions’ social media
sites, see the Fall 2013 FDIC Consumer
News (www.fdic.gov/consumers/consumer/
news/cnfall13/socialmedia.html).
Is It Time for Your Financial Checkup?
Tips that can help you fine-tune your money management