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FAQs frequently asked questions
Who is First Bankers’ Banc Securities, Inc. (FBBS)? FBBS formerly known as First St. Louis Securities, Inc. was founded in 1984 by four former Centerre Bank employees. FBBS is a broker-dealer that provides investment services to community banks and their customers. Investment services for community banks can include a range of services such as securities trading and sales, securities purchases and sales, comprehensive portfolio analytics, ongoing municipal credit review, money desk liquidity management, certificates of deposit, brokered CD issuance, repurchase agreements, fed funds and securities management. These services are designed to help community banks manage their investment portfolios and provide their customers with investment opportunities. Visit FBBS to learn more.
Who is BNY Mellon Pershing (Pershing)? Pershing is one of the country’s largest custodians. As our trusted custodian, they are tasked and committed to the safekeeping, segregation and reporting of client assets. Public ownership and global Systemically Important Bank (G-SIB) status ensures your assets and future are backed not just by words but by more rigorous auditing and independent third-party regulations and protections. Visit Pershing to learn more.
Who is CleverAlpha Asset Management, LLC. (CleverAlpha)? CleverAlpha is the software developer and systems provider of CDexplorer which First Bankers’ Banc licenses to use. You are a client of FBBS and not of CleverAlpha. Visit CleverAlpha to learn more.
Where is my CD and cash held? Your account is opened at one of the country’s largest custodians BNY Mellon Pershing. Your account is SPIC insured up to $500,000, any cash in that account is insured up to $250,000 and each CD in your account is insured up to $250,000 per bank by the FDIC or up to $250,000 per credit union by the NCUA. BNY Mellon Pershing is committed to the safekeeping, segregation and reporting of our global client assets. Their public ownership and global Systemically Important Bank (G-SIB) status ensures your assets are backed by rigorous testing and independent third-party regulations and protections.
What is the SIPC? The Securities Investor Protection Corporation (SIPC) is a federally mandated, non-profit, member-funded, United States government corporation created under the Securities Investor Protection Act (SIPA) of 1970 that mandates membership of most US-registered broker-dealers. SIPC protects customers if their brokerage firm fails. Brokerage firm failures are rare. If it happens, SIPC protects the securities and cash in your brokerage account up to $500,000. The $500,000 protection includes up to $250,000 protection for cash in your account to buy securities. Visit the SIPC to learn more.
What is the FDIC? The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system. It is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC is the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System. In addition, the FDIC is the back-up supervisor for the remaining insured banks and savings associations. Visit the FDIC to learn more.
What is the NCUA? The National Credit Union Administration (NCUA) is an independent federal agency created by the U.S. Congress in 1970. It insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions. The NCUA is headquartered in Alexandria, Virginia and is headed by a three-member board appointed directly by the president of the United States. Visit the NCUA to learn more.
What is FINRA? The Financial Industry Regulatory Authority. It is a government-authorized not-for-profit organization that oversees U.S. broker-dealers. Its mission is to safeguard the investing public against fraud and bad practices. It creates and enforces the rules that govern U.S. registered brokers and broker-dealers. Visit FINRA to learn more.
How do I open an account? You can create an account by clicking on the "Create an Account" button. You will be asked a series of questions to open a brokerage account with First Banker's Banc Securities, Inc. where your CDs will be traded on your behalf, settled into your account and then safekept with BNY Mellon Pershing. At the end of your new account onboarding you will be prompted to fund your account. This account opening process is designed to be simple, quick, secure and get you the CD you are looking for, from the bank you want and then your investment will be safekept at one of the country’s largest custodians so you can rest assured that your monies are safe and your CDs can generate income for your benefit.
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How is my data handled? Your data is handled according to our privacy policy stated HERE. However, please note that your data entered in our onboarding process will be accessed by our sub vendors for fraud prevention measures like with government ID card digitization, face match with a liveness check as well as anti-money laundering and database checks. In this process, your data can be stored as part of support services and quality checks for no more than 30 days and shall be purged automatically thereafter. Also, there could be the cross-border exchange of data for the rendering of these service. Any archival backup shall not be accessed for any reason whatsoever other than as mandated by the applicable laws. After onboarding, your data will be maintained for your benefit and legal records by First Banker’' Banc Securities, Inc. (your SEC registered Broker-Dealer), BNY Mellon Pershing (the SIPC insured custodian for your assets) and CleverAlpha Asset Management, LLC (the Software provider of the CDexplorer platform).
How safe is my data? The sanctity of your data and the security of your investment is tantamount to us and we secure your information within Amazon Web Services' cloud infrastructure and safe keep your CD at BNY Mellon Pershing.
How long does it take to set up a new account? Our goal is to get you through the new account process as quickly as possible by collecting the least amount of information required by law to open up a U.S. based SIPC insured brokerage account. We use a cutting edge facial matching to government issued ID technology to not only simplify the data aggregation for the new account form but also to satiate our 'know your customer' requirement.
How do I fund my account? At the end of your new account opening you will prompted to fund your account. You can either electronically send funds via our ACH money transfer app, wire money directly into your account from your bank or even mail a check. We will only be able to purchase the CD you want from the bank that you like if funds are fully settled into your account.
How do I send money into and out of my account? Sending money into your account is as simple as adding funds within the CDexplorer app using ACH or you can request that your bank wire in money. You can also simply mail a check. Moving money out of your account requires an email with a written request and only a like for like return of funds will be allowed. Meaning if money was sent into a your CDexplorer FBBS brokerage account from a specific U.S. based bank account number then that account can be the only receiving account number for your withdrawal. Withdrawal requests are designed to be deliberately careful. More information can be found HERE.
Send a Wire - you can send a Fed funds wire from your bank using the following wiring instructions:
BANK The Bank of New York Mellon
ABA NUMBER 021000018
BENEFICIARY Pershing LLC
BENEFICIARY ACCOUNT NUMBER 8900512385
ULTIMATE BENEFICIARY [Client’s brokerage account name]
ULTIMATE BENEFICIARY ACCOUNT NUMBER [Client's brokerage account number]
SWIFT CODE IRVTUS3N
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Mail in a check - you can also mail a traditional check to your Pershing custodial brokerage account.
Always include the Pershing account number on the face of each check.
Via U.S. Mail - checks can be sent via regular U.S. mail for deposit into a retail brokerage account at:
Pershing LLC
PO Box 382121
Pittsburgh, Pennsylvania 15250-8121
Via Overnight - mailing checks via overnight mail should be addressed to:
Pershing LLC
Attn: 382121
500 Ross Street 154-0455
Pittsburgh, Pennsylvania 15262-0001
Can I transfer an IRA or rollover a retirement account? Yes you can is the short answer. If you are rolling over a 401k to an IRA or depositing an IRA rollover before the 60 day tax and penalty window then mail a check to the following:
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Always include your Pershing account number and contribution type on the face of each check.
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Mail retirement account rollover deposits to the following location:
Pershing LLC - Rollover Processing
P.O. Box 382084
Pittsburgh, Pennsylvania 15250-8084
Mail retirement account transfer deposits to the following location:
Pershing LLC - Transfer Processing
P.O. Box 382091
Pittsburgh, Pennsylvania 15250-8091
How safe is my CD? According to Pershing, assets custodied at BNY Mellon Pershing are segregated from the general assets of BNY Mellon, N.A. and are separately accounted for. As a result, creditors of The Bank of New York Mellon Corporation and those of BNY Mellon, N.A., and their subsidiaries do not have any rights to the securities in client accounts. Also, Pershing is one of the country’s largest custodians. As our trusted custodian, they are tasked and committed to the safekeeping, segregation and reporting of client assets. Public ownership and global Systemically Important Bank (G-SIB) status ensures your assets and future are backed not just by words but by more rigorous auditing and independent third-party regulations and protections.
How often are the offerings updated? FBBS will attempt to update the offering grid at least daily but there may be times when the grid is not updated due to a lack of new deals in the market, market holidays or force majeure events. Please treat all offerings as subject as the market is dynamic and offerings may not be available while the offering grid may still be showing that a CD is available for purchase.
Is there a material difference between a Brokered CD and a regular CD that I would get at a bank branch? Your CD carries the same FDIC insurance as any other deposit offered by the bank. The difference between these deposits is how they are held. A brokered CD is held in a brokerage account (the CDs offered on this site are brokered CDs) and a bank CD is held at the bank. They carry all the same levels of FDIC insurance and most of the same features. A few differences in features may include:
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Death put: Brokered CDs carry an additional benefit know as an estate feature allowing the CD to be put back to the bank at full par value by the beneficiary upon death. To redeem a CD via a 'death put' you will need to furnish the bank with a death certificate and certificate of domicile. We can assist you with that in these rare cases.
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No early withdrawal: Early withdrawals may be allowed in some instances with bank branch issued CDs, but fees may apply. Brokered CDs do not allow for early withdrawal; although, there may be a secondary market bid for your CD. The value of that bid may be below what you paid for it or it may be better than the price you paid for it depending on the prevailing interest rate environment and the available liquidity in the secondary market. Contact FBBS with your full name, email, phone number, account number and CD CUSIP number to assess whether a secondary market bid for your CD exists.
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Is there a standard CD Disclosure document for brokered CDs? Yes there is and you can find it HERE
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Where can I learn more about FDIC insurance? You can learn more about FDIC insurance HERE
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Where can I learn more about NCUA insurance? You can learn more about NCUA insurance HERE
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