At SpectrumAM, we continue to work with our associations’ banks to ensure accounts have proper FDIC coverage. We also want to make sure the rates being offered are competitive to the current rates seen elsewhere in the market.
Earlier this month, amidst the current coronavirus pandemic, the Federal Reserve cut the benchmark federal funds rate by 1%, bringing rates down to a range of 0% to 0.25%.
This swift rate change has impacted what banks are paying on CD’s, money markets, and savings accounts. Rates are similar to what they were during the years 2008 to 2015.
While the coronavirus outbreak has significantly damaged global financial conditions, the underlying U.S. economy has remained solid. As recently as March 15, the Fed announced that rates would hold steady near 0% until the U.S. economy steadies from the coronavirus’ economic implications.
SpectrumAM primarily works with Veritex Community Bank, Pacific Premier Bank, and Alliance Association Bank – all leaders in the HOA industry. Alliance and Pacific Premier provide products that can offer full FDIC coverage, regardless of balances such as CDARS and ICS accounts. These special accounts are offered within a network of FDIC-insured banks. The account is established with one bank, and you have only one statement. The bank places funds over the $250,000 FDIC coverage limit with other financial institutions in the network to fully protect the balance. CDARS are CD accounts held in this network, and ICS accounts are money market and checking accounts also held in this network.
At SpectrumAM, these three primary banks we work with communicate with our Financial Services Team on a daily basis. This allows us to communicate immediately if there are any potential concerns (i.e. suspicious activity or low funds).
Now, more than ever, you may want to consider keeping your bank accounts with our trusted HOA bank partners, who are uniquely situated to handle any marketing fluctuations.
