1) Are the non-deposit investment products offer through Intercredit Bank guaranteed by the FDIC?
No. Non-deposit investment products are not insured by the FDIC, are not a Bank Deposit, are not guaranteed by Intercredit Bank, involve investment risk and may lose value.
2) What types of investment are available under the non-deposit investment program?
We offer the following fixed income and equity investment alternatives:
- U.S. Treasury & Agency Bonds (Fixed Income)
- U.S. Agency Mortgage Backed Securities (Fixed Income)
- Corporate Bonds & non- U.S. Agency-U.S. & Foreign (Fixed Income)
- Foreign Government Bonds (Fixed Income)
- Bond Mutual Funds (Fixed Income)
- Equity Mutual Funds (Equity)
- Balanced Funds (Fixed Income & Equity)
3) What is my yield/total return on a mutual fund investment?
There is no guaranteed total return on a mutual fund investment. A mutual fund investment may specify historical returns from the fund over the past month, 1 year, 5 years etc. However, past performance is not necessarily an indication of future performance, thus there is no guaranteed total return on a mutual fund investment.
4) If I invest in a very conservative investment such as a U.S. Treasury bond and the U.S Treasury does not default on their principal and/or interest payments to investors, can I still lose part of my principal?
Yes. U.S. Treasury bonds are marketable instruments, and thus, if the investor decides to sell the bond prior to maturity, there is a possibility of a loss of principal.
5) What is a bond credit rating?
Credit ratings are forward looking measures that assess the overall financial creditworthiness of an issuer. Investments are rated by various rating agencies and among the most recognized in the U.S. are S&P, Moody’s and Fitch. The highest rating is AAA. A rating of AA or A is also considered strong creditworthiness. Ratings of BBB are considered adequate although not as strong as A or higher and ratings below BBB (e.g. BB, B, CCC and lower) are considered more speculative due to the higher probability of default in comparison to the ratings that are BBB or higher.
6) Who can I contact regarding general or specific questions regarding non-deposit investments?
You can contact Rafael Mestre (VP of Wealth Management) at 305-375-8442 (ext. 1218) or via email at rmestre@intercreditbank.com.
7) Do I need to have any other account at Intercredit Bank, N.A. prior to opening a non-deposit investment account?
Yes, you need to open either a Checking, Super Now, Money Market or Savings account at Intercredit Bank prior to opening a non-deposit investment account.
8) What are the minimum investment amounts and what fees do I pay on a non-deposit investment account?
Individual Fixed Income Bonds $100,000
Mutual Funds * $ 50,000
* Only offered to Non-U.S. residents
Custody Fees
$100,000-$499,999 $25/Month
$500,000-$999,999 $50/Month
$1,000,000-$4,999,999 $100/Month
$5,000,000 and over $150/Month
$100 Registration Fee for Buying, Selling or Transferring Securities