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Money Smart News Winter 2007
IN THIS ISSUE
Message from the FDIC
New FDIC Emphasis on Small
Loans and Financial Education
FDIC Tips for Teaching People
with Visual Impairments
Talking Taxes and Financial
Education
Latest FDIC Consumer News
Features Common Mistakes
that Cost Bank Customers
Money
Message from the FDIC
Employees at the FDIC take great pride in knowing that the work we do
each day goes beyond providing deposit insurance in case
an insured bank or savings institution were to fail. In particu-
lar, the FDIC is pleased to serve and support individuals and
families through financial education programs in a wide varie-
ty of areas, as indicated by the range of topics covered in this
issue of our quarterly Money Smart News.
Here you can learn how the FDIC is encouraging financial institutions to
offer new types of affordable small-dollar loan products to consumers,
perhaps along with a savings feature and financial education. Among
the groups the FDIC especially wants to help are those serving in the
military and their families that may now be using high-cost financial ser-
vice providers instead of mainstream banking institutions.
You'll read how the FDIC and our Money Smart financial education pro-
gram can help educators teach personal finance to people with visual
impairments. We're also doing our part to help people with disabilities
understand how they can get free tax assistance and why it's important
for them to be putting money into savings accounts. Also read about the
latest FDIC Consumer News, which highlights some expensive errors
bank customers make and how to avoid them.
The bottom line is that financial education can help people obtain the
knowledge and the confidence they need to save and borrow money to
buy a home, start a business, fund an education or otherwise support
their families. If you want to learn more or be a part of what the FDIC is
doing to promote financial education, please contact your regional Com-
munity Affairs Officer.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
Money Smart News Winter 2007
IN THIS ISSUE
Message from the FDIC
New FDIC Emphasis on Small
Loans and Financial Education
FDIC Tips for Teaching People
with Visual Impairments
Talking Taxes and Financial
Education
Latest FDIC Consumer News
Features Common Mistakes
that Cost Bank Customers
Money
Message from the FDIC
Employees at the FDIC take great pride in knowing that the work we do
each day goes beyond providing deposit insurance in case
an insured bank or savings institution were to fail. In particu-
lar, the FDIC is pleased to serve and support individuals and
families through financial education programs in a wide varie-
ty of areas, as indicated by the range of topics covered in this
issue of our quarterly Money Smart News.
Here you can learn how the FDIC is encouraging financial institutions to
offer new types of affordable small-dollar loan products to consumers,
perhaps along with a savings feature and financial education. Among
the groups the FDIC especially wants to help are those serving in the
military and their families that may now be using high-cost financial ser-
vice providers instead of mainstream banking institutions.
You'll read how the FDIC and our Money Smart financial education pro-
gram can help educators teach personal finance to people with visual
impairments. We're also doing our part to help people with disabilities
understand how they can get free tax assistance and why it's important
for them to be putting money into savings accounts. Also read about the
latest FDIC Consumer News, which highlights some expensive errors
bank customers make and how to avoid them.
The bottom line is that financial education can help people obtain the
knowledge and the confidence they need to save and borrow money to
buy a home, start a business, fund an education or otherwise support
their families. If you want to learn more or be a part of what the FDIC is
doing to promote financial education, please contact your regional Com-
munity Affairs Officer.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
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Money Smart News Winter 2007
New FDIC Emphasis on Small Loans and Financial Education
On December 4, 2006, the FDIC issued draft guidelines to encourage FDIC-supervised banks to offer affordable small-
dollar loan products, incorporate a savings component into the loan, and consider financial education for frequent bor-
rowers (as a tool to create better-informed bank customers and improve long-term customer relationships). The FDIC will
accept comments on the draft guidelines through February 2, 2007. In a related development, on December 6, the FDIC
sponsored a conference to help encourage banks to provide affordable, short-term, small-dollar loans to military person-
nel and their families as alternatives to products being offered by high-cost providers. (Read more about the draft guide-
lines and the request for comment.)
FDIC Tips for Teaching People with Visual Impairments
In our Fall 2006 issue we reported that the FDIC was launching the Money Smart financial education curriculum in Braille
and large-print editions. Here, in the latest installment of our Money Smart Success Stories, we feature a collection of
some "best practices" compiled by FDIC staff that Money Smart educators can use to effectively teach financial concepts
to the visually impaired. (Read more.)
Talking Taxes and Financial Education
The FDIC has joined with the Internal Revenue Service and other public and private organizations to help the National
Disability Institute (NDI) expand its campaign to help people with disabilities obtain free income-tax assistance and gain
a greater awareness of the importance of checking and savings accounts. At a kick-off event in October in Washington,
DC, the NDI also unveiled research indicating that fewer than half of the low-income people with disabilities that it sur-
veyed had a checking or savings account. FDIC Community Affairs Officer Glenn Brewer spoke at the event and noted
the importance of financial education in helping low-income people with disabilities reach their financial goals. (Read
more.)
Financial educators also should be aware of a new opportunity for taxpayers to save a portion of their tax refunds. Start-
ing January 1, 2007, the IRS will give taxpayers the flexibility to split portions of their direct-deposited tax refunds in up to
three different accounts and three different U.S. financial institutions instead of just one checking or savings account.
(Read more.)
The FDIC also is reminding financial educators and financial institutions about opportunities associated with the IRS-
coordinated Volunteer Income Tax Assistance (VITA) program, which offers free tax return preparation for low- and mod-
erate-income individuals. The FDIC also continues to encourage financial institutions to consider developing relation-
ships with VITA sites as ways to promote financial education and banking products to taxpayers. (Read more.)
Latest FDIC Consumer News Features Common Mistakes that Cost Bank Customers Money
The Fall 2006 issue of FDIC Consumer News features some of the more common and costly mistakes consumers make
when using their checking account, credit card or other banking services, along with guidance on how to avoid these
errors. Also in this issue, the FDIC highlights some of the latest frauds targeting bank customers, provides money tips for
shoppers, and includes updated information about the higher FDIC coverage for certain retirement accounts that took
effect April 1, 2006. Financial educators are encouraged to use FDIC Consumer News as a resource. Current and back
issues are online. Educators and their students also are encouraged to sign up for a free subscription. (See the latest
newsletter and subscription information.)
Money Smart News Winter 2007
New FDIC Emphasis on Small Loans and Financial Education
On December 4, 2006, the FDIC issued draft guidelines to encourage FDIC-supervised banks to offer affordable small-
dollar loan products, incorporate a savings component into the loan, and consider financial education for frequent bor-
rowers (as a tool to create better-informed bank customers and improve long-term customer relationships). The FDIC will
accept comments on the draft guidelines through February 2, 2007. In a related development, on December 6, the FDIC
sponsored a conference to help encourage banks to provide affordable, short-term, small-dollar loans to military person-
nel and their families as alternatives to products being offered by high-cost providers. (Read more about the draft guide-
lines and the request for comment.)
FDIC Tips for Teaching People with Visual Impairments
In our Fall 2006 issue we reported that the FDIC was launching the Money Smart financial education curriculum in Braille
and large-print editions. Here, in the latest installment of our Money Smart Success Stories, we feature a collection of
some "best practices" compiled by FDIC staff that Money Smart educators can use to effectively teach financial concepts
to the visually impaired. (Read more.)
Talking Taxes and Financial Education
The FDIC has joined with the Internal Revenue Service and other public and private organizations to help the National
Disability Institute (NDI) expand its campaign to help people with disabilities obtain free income-tax assistance and gain
a greater awareness of the importance of checking and savings accounts. At a kick-off event in October in Washington,
DC, the NDI also unveiled research indicating that fewer than half of the low-income people with disabilities that it sur-
veyed had a checking or savings account. FDIC Community Affairs Officer Glenn Brewer spoke at the event and noted
the importance of financial education in helping low-income people with disabilities reach their financial goals. (Read
more.)
Financial educators also should be aware of a new opportunity for taxpayers to save a portion of their tax refunds. Start-
ing January 1, 2007, the IRS will give taxpayers the flexibility to split portions of their direct-deposited tax refunds in up to
three different accounts and three different U.S. financial institutions instead of just one checking or savings account.
(Read more.)
The FDIC also is reminding financial educators and financial institutions about opportunities associated with the IRS-
coordinated Volunteer Income Tax Assistance (VITA) program, which offers free tax return preparation for low- and mod-
erate-income individuals. The FDIC also continues to encourage financial institutions to consider developing relation-
ships with VITA sites as ways to promote financial education and banking products to taxpayers. (Read more.)
Latest FDIC Consumer News Features Common Mistakes that Cost Bank Customers Money
The Fall 2006 issue of FDIC Consumer News features some of the more common and costly mistakes consumers make
when using their checking account, credit card or other banking services, along with guidance on how to avoid these
errors. Also in this issue, the FDIC highlights some of the latest frauds targeting bank customers, provides money tips for
shoppers, and includes updated information about the higher FDIC coverage for certain retirement accounts that took
effect April 1, 2006. Financial educators are encouraged to use FDIC Consumer News as a resource. Current and back
issues are online. Educators and their students also are encouraged to sign up for a free subscription. (See the latest
newsletter and subscription information.)