Required Disclosures To Advertise FDIC Insured (And Non-Insured) IRAs

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Question:

I want to advertise IRAs which can be either a nondeposit investment product or a FDIC insured deposit product. What type of disclosure is needed? If you put FDIC on the ad, it doesn't cover investment products?

Answer:

If you plan to invest IRA deposits in places that are not insured by FDIC then you need to make that very clear. Some banks are putting customer money in annuities which are not FDIC insured. While it may be ok, full disclosure to your customers is very wise. I would suggest you communicate that your bank is offering investments with a range of return possibilities and that when they come into the bank, this will be explained.

First published on BankersOnline.com 4/07/03