Local News

Experts Watch Banks & Money Safety

(KDKA) As concerns about the economy continue, banks in our region have been under scrutiny as well.

On Monday, National City saw its stock fall because of rumors of financial trouble.

That is leaving many to ask whether their money is safe.

Financial experts say the reassuring answer is yes, for the most part, but it is not as clear-cut as one might think.

While the Federal Deposit Insurance Corporation (FDIC) insures some dealings with a bank, it won't insure everything.

That means it pays to check things out with your own financial institution.

"With all the recent happenings that are going on right now, I think everybody is a little bit concerned, not only with banks, but with other money institutions as well," said local resident, Steve Schilb, of Harrison City. "For instance, my wife and I talk about it every day."

The Schilbs of Harrison City speak for many when it comes to the safety of our money in the bank.

Local financial advisor Carrie Coghill Kuntz has been keeping an eye on the banks in this region.

"The question of is your money safe really comes down to how much money you have in the bank and where is that money within the bank," she says.

If a checking or savings account is $100,000 or less, every penny of it is insured by the FDIC, but banks now offer lots of other products and some are not insured.

"A Money Market Mutual Fund is not protected, any type of mutual fund is not protected," she says. "A Money Market deposit account is protected."

The other question, says Coghill Kuntz, is could your bank go bankrupt?

"We are a strong company, we are well capitalized and we continue to grow and we think PNC remains a good long-term investment," said PNC spokesman Patrick McMahon.

BankRate.com, an industry website that evaluates banks, ranks Citizens Bank slightly ahead of PNC, but it reserves on its lowest ratings to National City bank.

"We can't prevent speculation that abounds across the industry, what we can do is reiterate the facts," said National City Bank spokesperson Kristen Baird Adams. "Today National City stands with one of the highest tier one capital ratios among large banks in the United States and our customer deposits and investments with National City are safe."

"As long as it is FDIC insured, nobody has ever lost money," adds Coghill Kuntz.

That remains true no matter which bank you use as long as your money is in the right kind of account and the dollars insured go up for bank IRAs.

But if you've got something more than a checking or savings account at your bank it won't hurt to give them a call to make sure the accounts are FDIC protected.

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