Bank of Ipswich: No Strings Account*
Finally, an advertiser is offering a product with “no strings attached.” The First National Bank of Ipswich is promoting a relatively high rate of interest for a local bank and is not requiring that you also open any other account to get the low advertised rate. Most people, however, do not qualify to get this deal. Why?
*MOUSE PRINT: “Minimum balance $100,000″ [Boston Globe, 3/19/06]
And, since this is a national bank, it only offers deposit insurance from the FDIC (and not from Massachusetts). That means only deposits up to $100,000 are covered by the FDIC. Therefore, any interest you earn that remains in the account will be uninsured.
“No strings” ?
The note about FDIC insurance would only be true in the case of an individual account with 0 or 1 beneficiaries. If the account is owned by 2 or more people, or has 2 or more qualifying beneficiaries, then the account would be insured for more than the base $100,000.00. The FDIC’s website http://www.fdic.gov,
Comment by Beth Baughman — September 26, 2006 @ 5:07 pmhas excellent resources to explain FDIC insurance.