My thoughts and prayers are with you and your loved ones during these uncertain times, and like so many, I have a heavy heart as I hear each day about the impacts COVID-19 is having on our communities. We continue to monitor this situation closely and wanted to take a moment to summarize some of the things we are doing to give you peace of mind that your funds and our banking system is stable and safe.
Banks and the FDIC
An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country.
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. At ADM, we aggregate this insurance through our bank network and by spreading cash across multiple banks, depositors have access to even more FDIC insurance coverage, making it possible to keep even larger sums of cash fully insured.
ADM, Safety and Returns
We are living through extraordinary times—this virus has created havoc in all sectors of our society. And while our memories can be short, I want to remind you that it was a mere 11 years ago where we experienced the financial crisis of 2008. That crisis stressed the banking industry and we watched over 500 banks fail. Large depositors were seeking safety of their funds and it was then The American Deposit Management Company was born. At the height of this crisis, The American Deposit Management Co. created a cash management solution that enables large depositors to benefit from increased deposit insurance by working with a network of banks and credit unions nationwide. Since that time, we now also offer access to Surety Bonds, Federal Home Loan Bank Letters of Credit (FHLB-LOC) and pledged collateral through our bank partners. Today, over 500 clients across every sector of our economy trust ADM to manage and protect billions of their bank deposits. Each of you benefit from our competitive rates, product offerings but most importantly during times of crisis, full protection of your funds. Your funds are safe and accessible to you when you need them. This is what we do, it’s all we do, and we do it well.
While your funds are safe, you will see that the returns have changed. This month alone, the Federal Reserve (“Fed”) reduced rates 1.00%–taking the current Fed Funds Rate to 0%-0.25%. You can think of the Fed as a bank for banks, and so the Fed Funds rate is effectively the rate at which banks can borrow from (or lend funds to) the Fed overnight. Banks set deposit and loan rates based on the Fed, so you will see a change from your prior statements. However, I want to remind you that your rate is competitive. Similar products that offer the full faith and credit of the US Government are also adjusted downward below 0.25% and will continue to dip as the economy weakens. We are working closely with our network to offer certificates of deposit (CDs) to help with your returns in this low rate environment. ADM will always offer competitive rates of return—but safety of your deposits is our #1 priority.
Serving our Customers
Our team understands the importance of accessing your cash and ensuring we are available to process your transactions. ADM is ready for anything that comes. We are both in the office and are using remote access to continue operations. This continuity plan along with the deep relationships with our banking partners, equip us to respond to your needs as they arise. If you need a wire, payment made or the ability to send funds in a moment’s notice, we are ready for you. Our network also has excess capacity for increased deposits you’d like to send to your account.
You can reach us anytime using email at email@example.com, chat with us real time using our interactive website tool, or call our offices at 800-407-5150.
Supporting our Employees
We’ve also been working to keep our employees as safe as possible, including advising those who can work from home to do so. As an essential service provider, we realize that we must also continue to be there to help keep our customers connected. So, we have established a support structure for our employees who are unable work from home to ensure they can follow public health guidance or stay at home for their families if the need arises. This includes flexible work schedules, additional paid time off and steps to maintain income for our hourly employees. I am inspired as I see communities, our nation and the world coming together to fight this pandemic. Our team is part of your community and we are dedicated to supporting you all through this unprecedented time. Please stay safe and know that you can count on The American Deposit Management Company.
Kelly A. Brown
Chairman & CEO