1
Money Smart News Summer 2010
IN THIS ISSUE
Message from the FdIC
FDIC Chairman Discusses Im-
portance of Financial Education
to the Economy
The FDIC Testifies Before Con-
gress on Initiatives to Advance
Financial Education
Ways to Introduce College Stu-
dents to Financial Education:
Successful Answers to a Multi-
ple-Choice Question
Latest FDIC Consumer News
Discusses Credit Cards, De-
positing Funds Through an
Agent or Broker, and Reverse
Mortgages
New Version of FDIC Deposit
Insurance Estimator Now Avail-
able
New Way to Order FDIC Prod-
ucts Online
Small-Dollar Loan Pilot Project
Shows Banks Can Offer Alter-
natives to High-Cost, Short-
Term Credit
Advisory Committee Discusses
Safe Accounts for Underserved
Consumers
Agencies Announce Public
Hearings on Community Rein-
vestment Act Regulations
New Campaign Offers Educa-
tional Materials to Fight Loan
Modification Scams
GAO Reports on the Financial
Literacy of People With Limited
English Proficiency
Message from the FDIC
As a consumer, I appreciate the tips issued by government and private
agencies on how to stay safe. Summer presents many opportunities to
learn about managing money, from what teenagers should know about
getting a summer job to how families can keep vacation costs down.
That's why I am pleased that the Summer issue of our Money Smart
News presents new ways the FDIC and our outside partners are working
to educate people of all ages how to safely manage their money and plan
for their future.
In this edition, read what FDIC Chairman Sheila C. Bair thinks about financial educa-
tion and consumer protection efforts -- and avoiding another financial crisis. Chairman
Bair explained her interest in expanding access to "safe" accounts, which she de-
scribed as "federally insured, affordable, easy to understand and free of hidden or un-
fair fees."
In fact, the FDIC recently sought and received public comments on templates for safe,
low-cost transaction accounts and basic savings accounts for low- and moderate-
income consumers. Once finalized, the templates may be of interest to financial institu-
tions as they design or review their own deposit products, particularly those that they
offer to Money Smart workshop participants. You can also find out about the results of
the FDIC's two-year pilot project that reviewed affordable and responsible small-dollar
loan programs in financial institutions.
There are several new educational resources that bankers and other educators can
use to promote safe and smart banking by consumers. One is a new online catalog for
ordering free educational products from the FDIC. Another is an educational resource
from NeighborWorks America® about avoiding loan modification scams. Read the lat-
est issue of FDIC Consumer News, a quarterly newsletter for consumers, which fea-
tures money-saving tips in the new world of credit cards. Also learn about an update to
EDIE – the FDIC's interactive, online deposit insurance calculator – that can be cus-
tomized by banks for use on their Web sites.
When summer draws to a close, that will mean it is back-to-school time. The "Success
Stories" feature in this edition of Money Smart News looks at ways that financial educa-
tion can reach students at colleges and universities. Several of these teaching strate-
gies can be put to use by other educators, in various settings, for all age groups.
As always, if you have questions or suggestions regarding financial education or how
to promote access to insured financial services, please contact the FDIC.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
Money Smart News Summer 2010
IN THIS ISSUE
Message from the FdIC
FDIC Chairman Discusses Im-
portance of Financial Education
to the Economy
The FDIC Testifies Before Con-
gress on Initiatives to Advance
Financial Education
Ways to Introduce College Stu-
dents to Financial Education:
Successful Answers to a Multi-
ple-Choice Question
Latest FDIC Consumer News
Discusses Credit Cards, De-
positing Funds Through an
Agent or Broker, and Reverse
Mortgages
New Version of FDIC Deposit
Insurance Estimator Now Avail-
able
New Way to Order FDIC Prod-
ucts Online
Small-Dollar Loan Pilot Project
Shows Banks Can Offer Alter-
natives to High-Cost, Short-
Term Credit
Advisory Committee Discusses
Safe Accounts for Underserved
Consumers
Agencies Announce Public
Hearings on Community Rein-
vestment Act Regulations
New Campaign Offers Educa-
tional Materials to Fight Loan
Modification Scams
GAO Reports on the Financial
Literacy of People With Limited
English Proficiency
Message from the FDIC
As a consumer, I appreciate the tips issued by government and private
agencies on how to stay safe. Summer presents many opportunities to
learn about managing money, from what teenagers should know about
getting a summer job to how families can keep vacation costs down.
That's why I am pleased that the Summer issue of our Money Smart
News presents new ways the FDIC and our outside partners are working
to educate people of all ages how to safely manage their money and plan
for their future.
In this edition, read what FDIC Chairman Sheila C. Bair thinks about financial educa-
tion and consumer protection efforts -- and avoiding another financial crisis. Chairman
Bair explained her interest in expanding access to "safe" accounts, which she de-
scribed as "federally insured, affordable, easy to understand and free of hidden or un-
fair fees."
In fact, the FDIC recently sought and received public comments on templates for safe,
low-cost transaction accounts and basic savings accounts for low- and moderate-
income consumers. Once finalized, the templates may be of interest to financial institu-
tions as they design or review their own deposit products, particularly those that they
offer to Money Smart workshop participants. You can also find out about the results of
the FDIC's two-year pilot project that reviewed affordable and responsible small-dollar
loan programs in financial institutions.
There are several new educational resources that bankers and other educators can
use to promote safe and smart banking by consumers. One is a new online catalog for
ordering free educational products from the FDIC. Another is an educational resource
from NeighborWorks America® about avoiding loan modification scams. Read the lat-
est issue of FDIC Consumer News, a quarterly newsletter for consumers, which fea-
tures money-saving tips in the new world of credit cards. Also learn about an update to
EDIE – the FDIC's interactive, online deposit insurance calculator – that can be cus-
tomized by banks for use on their Web sites.
When summer draws to a close, that will mean it is back-to-school time. The "Success
Stories" feature in this edition of Money Smart News looks at ways that financial educa-
tion can reach students at colleges and universities. Several of these teaching strate-
gies can be put to use by other educators, in various settings, for all age groups.
As always, if you have questions or suggestions regarding financial education or how
to promote access to insured financial services, please contact the FDIC.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
2
Money Smart News Summer 2010
FDIC Chairman Discusses Importance of Financial Education to the Economy
In a speech in Atlanta on April 7, FDIC Chairman Sheila Bair offered five ways that financial education can help us avoid
another financial crisis. She noted that financial education empowers consumers to use mainstream financial services
responsibly. She also said that all consumers should have access to "safe" accounts and services that are well-
structured, easy to understand, and competitively priced. To read the speech, visit http://www.fdic.gov/news/news/
speeches/archives/2010/spapr0710.html. Also see the related news item below on discussions of safe accounts by the
FDIC Advisory Committee.
The FDIC Testifies Before Congress on Initiatives to Advance Financial Education
On July 15, FDIC Division Director Sandra Thompson testified before a Senate subcommittee on the role of the federal
government in empowering Americans to make informed financial decisions. Her testimony discussed a number of initia-
tives by the FDIC to improve financial education and access. Read it at: http://www.fdic.gov/news/news/speeches/
archives/2010/spjul1510.html.
Ways to Introduce College Students to Financial Education: Successful Answers to a Multiple
-Choice Question
This edition of the Money Smart News Success Stories focuses on strategies for delivering financial education to stu-
dents at colleges and universities. Don't forget to look at past Success Stories that highlight other successful strategies
to reach people of all ages in various venues. (Read the stories.)
Latest FDIC Consumer News Discusses Credit Cards, Depositing Funds Through an Agent or
Broker, and Reverse Mortgages
As reported in the Fall 2009 issue of Money Smart News, a new credit card law helps protect consumers from most in-
stances of sudden increases in interest rates and other unfavorable changes in terms. But as noted in the Spring 2010
issue of FDIC Consumer News, there are still potential pitfalls for credit cardholders. The FDIC newsletter offers eight
ways to avoid problems including increases in rates and fees and reductions in credit limits. Other timely articles discuss
questions to ask before depositing money through an "agent" or broker instead of directly with a bank, and understanding
the risks and costs of a reverse mortgage. The FDIC encourages financial institutions, financial educators and others to
distribute the information in FDIC Consumer News by reprinting, linking to the material, or making copies and affixing
their name or logo. Subscriptions are free. See the latest newsletter and subscription information at http://www.fdic.gov/
consumers/consumer/news/cnspr10/.
New Version of FDIC Deposit Insurance Estimator Now Available
The FDIC's Electronic Deposit Insurance Estimator, better known as "EDIE," can be used to calculate the insurance cov-
erage of all types of deposit accounts offered by an FDIC-insured bank. Consumers who have more than $250,000 on
deposit in the bank will find EDIE useful to calculate their FDIC insurance coverage. EDIE also assists bank employees
who answer customer questions about deposit insurance coverage. An updated version of EDIE announced by the FDIC
in April offers new functions requested by consumers and bankers, such as the ability to calculate deposit insurance cov-
erage for irrevocable trust accounts, which are held in the name of trusts that cannot be changed or nullified. FDIC-
insured institutions also can now integrate and customize the EDIE application for their own Web sites. To use EDIE and
to learn more about deposit insurance coverage, visit www.fdic.gov/deposit/deposits.
New Way to Order FDIC Products Online
Our new online catalog enables financial educators, consumers and others to more easily order FDIC educational re-
sources free of charge. These products cover such topics as what happens when a bank fails, how deposit insurance
coverage works, and ways to avoid foreclosure rescue scams. For more details and to place an order, start at https://
vcart.velocitypayment.com/fdic/index.php.
Small-Dollar Loan Pilot Project Shows Banks Can Offer Alternatives to High-Cost, Short-Term
Credit
On June 24, 2010, a report was issued that highlights final results of the FDIC's pilot project to review affordable and re-
sponsible small-dollar loan programs in financial institutions. The study shows banks can offer alternatives to high-cost,
short-term credit, and it resulted in the creation of a template of elements for safe, affordable and feasible small-dollar
loans. Read the press release at http://www.fdic.gov/news/news/press/2010/pr10140.html, which provides links to the full
text of the report and the template.
Money Smart News Summer 2010
FDIC Chairman Discusses Importance of Financial Education to the Economy
In a speech in Atlanta on April 7, FDIC Chairman Sheila Bair offered five ways that financial education can help us avoid
another financial crisis. She noted that financial education empowers consumers to use mainstream financial services
responsibly. She also said that all consumers should have access to "safe" accounts and services that are well-
structured, easy to understand, and competitively priced. To read the speech, visit http://www.fdic.gov/news/news/
speeches/archives/2010/spapr0710.html. Also see the related news item below on discussions of safe accounts by the
FDIC Advisory Committee.
The FDIC Testifies Before Congress on Initiatives to Advance Financial Education
On July 15, FDIC Division Director Sandra Thompson testified before a Senate subcommittee on the role of the federal
government in empowering Americans to make informed financial decisions. Her testimony discussed a number of initia-
tives by the FDIC to improve financial education and access. Read it at: http://www.fdic.gov/news/news/speeches/
archives/2010/spjul1510.html.
Ways to Introduce College Students to Financial Education: Successful Answers to a Multiple
-Choice Question
This edition of the Money Smart News Success Stories focuses on strategies for delivering financial education to stu-
dents at colleges and universities. Don't forget to look at past Success Stories that highlight other successful strategies
to reach people of all ages in various venues. (Read the stories.)
Latest FDIC Consumer News Discusses Credit Cards, Depositing Funds Through an Agent or
Broker, and Reverse Mortgages
As reported in the Fall 2009 issue of Money Smart News, a new credit card law helps protect consumers from most in-
stances of sudden increases in interest rates and other unfavorable changes in terms. But as noted in the Spring 2010
issue of FDIC Consumer News, there are still potential pitfalls for credit cardholders. The FDIC newsletter offers eight
ways to avoid problems including increases in rates and fees and reductions in credit limits. Other timely articles discuss
questions to ask before depositing money through an "agent" or broker instead of directly with a bank, and understanding
the risks and costs of a reverse mortgage. The FDIC encourages financial institutions, financial educators and others to
distribute the information in FDIC Consumer News by reprinting, linking to the material, or making copies and affixing
their name or logo. Subscriptions are free. See the latest newsletter and subscription information at http://www.fdic.gov/
consumers/consumer/news/cnspr10/.
New Version of FDIC Deposit Insurance Estimator Now Available
The FDIC's Electronic Deposit Insurance Estimator, better known as "EDIE," can be used to calculate the insurance cov-
erage of all types of deposit accounts offered by an FDIC-insured bank. Consumers who have more than $250,000 on
deposit in the bank will find EDIE useful to calculate their FDIC insurance coverage. EDIE also assists bank employees
who answer customer questions about deposit insurance coverage. An updated version of EDIE announced by the FDIC
in April offers new functions requested by consumers and bankers, such as the ability to calculate deposit insurance cov-
erage for irrevocable trust accounts, which are held in the name of trusts that cannot be changed or nullified. FDIC-
insured institutions also can now integrate and customize the EDIE application for their own Web sites. To use EDIE and
to learn more about deposit insurance coverage, visit www.fdic.gov/deposit/deposits.
New Way to Order FDIC Products Online
Our new online catalog enables financial educators, consumers and others to more easily order FDIC educational re-
sources free of charge. These products cover such topics as what happens when a bank fails, how deposit insurance
coverage works, and ways to avoid foreclosure rescue scams. For more details and to place an order, start at https://
vcart.velocitypayment.com/fdic/index.php.
Small-Dollar Loan Pilot Project Shows Banks Can Offer Alternatives to High-Cost, Short-Term
Credit
On June 24, 2010, a report was issued that highlights final results of the FDIC's pilot project to review affordable and re-
sponsible small-dollar loan programs in financial institutions. The study shows banks can offer alternatives to high-cost,
short-term credit, and it resulted in the creation of a template of elements for safe, affordable and feasible small-dollar
loans. Read the press release at http://www.fdic.gov/news/news/press/2010/pr10140.html, which provides links to the full
text of the report and the template.