Dan Dierdorff, Executive Vice President and Chief Lending officer of Fortune Bank, recently offered these financial tips in a letter to Fortune Bank’s customers. It read:
Money market accounts are viewed as one of the safest and most liquid investments yet, as documented in several media accounts, that is not always the case. Since several of our customers have inquired about these funds, we thought it appropriate to address the topic.
Q. How are people losing money on money market accounts?
A. Money is lost in money market accounts when the assets in which funds are invested lose value. For example, a money market fund that invested in sub-prime mortgages would lose value as the value of the underlying investment, the sub-prime mortgages, decreased in value.
Q. What should I do if I think my investment is at risk?
A. Ask your banker, broker or financial service advisor for information on their money market fund. Find out where the fund invests its funds and make sure you understand the risks of the investment. Also, make sure your bank or brokerage company is financially strong and adequately capitalized.
Q. What should I look for in a money market account?
A. Understanding the relationship between risk and reward is important. If one money market is offering a significantly higher return than others, it most likely is investing in higher risk assets. Make sure you know and understand where and how your money will be invested.
Q. How is Fortune Bank different?
A. Fortune Bank is financially strong and well capitalized. Our money market accounts, up to $100,000, are insured by Federal Deposit Insurance Corporation (FDIC) and our customers have access to their money any time they want it. There is no waiting period.
In addition, through our CDARS program we are able to extend FDIC insurance for balances over $100,000.
We would welcome the opportunity to speak with you further about money market accounts and invite you to call us at: 206-624-5700 or 1-866-914-5700 or you can reach me at 206-254-7270 or send me an email at dand@fortunebankwa.com.
Dan Dierdorff
Executive Vice President & Chief Lending Officer
Fortune Bank