NDIC Counsels Depositors to Patronise Insured Banks

The Nigeria Deposit Insurance Corporation (NDIC) has said that depositors risk losing their money in any financial institution not insured by the corporation and accordingly warned members of the public to always ensure their monies are kept in save banks.

The Port-Harcourt Zonal Coordinator of the NDIC, Mr. Chibuzor Onwumere gave the warning at a sensitisation workshop organised by the NDIC for members of the National Youth Service Corps (NYSC) posted to Akwa Ibom State.

Addressing the Corps members in their camp at Nsit Atai Local Government Area of the state

Mr. Onwumere argued that the warning became imperative as customers who have deposits in

uninsured financial institutions would not be indemnified and reimbursed should financial institutions become insolvent.

In order to douse such risk, he charged the NYSC members and other potentials depositors to build savings relationships with insured banking institutions to enable them to secure loans and other financial assistance necessary for them to build their future.

Hear him: “When you keep money in the bank, your money is safe from theft, loss and fire, you can get money quickly and easily and you can use the bank to transfer fund from one location to another instead of carrying cash around.

“Using a bank to transact business is cheaper than using other forms of doing same and building a relationship with a bank can help you save money, plan investment for future and may be necessary to access a loan as well as get paid interest on your savings.

“One other important thing to know is that in case of a bank failure, your money is safe since your money is insured by the NDIC. The NDIC guarantees payment of deposits up to a maximum amount if a bank fails”.

Onwumere explained that the NDIC is charged with the responsibility of ensuring that failing and failed insured institutions are resolved in timely manner through the provision of financial and technical assistance, take-over of control and organization of bridge banks.

Also, in line with its term of service, he said the NDIC would ensure the orderly and efficient closure of any bank found to be unhealthy while depositors will receive from commercial banks the sum of N500,000 naira while those affected in the micro finance banks will take home N200,000 naira.