Savings boost island banks and institutions

Steve Teruya
Steve Teruya
Alton Slater
Alton Slater

By Paul Drewes - bio | email

MANOA (KHNL) - Failing banks have left some worried about the health of financial institutions.

But locally, island businesses are still 'banking' on people to step up their saving.

Slumping stocks have many taking money out of the market and putting it somewhere safer.

"Hawaii has been a beneficiary of increased deposits, people have moved money from brokerages and brokerage accounts," said Steve Teruya, the President of Finance Factors.

That's exactly why Alton Slater is at Finance Factors.

"We're depositing money we took from Scottrade and created CDs. They pay high interest rates here," said the Manoa resident.

As a retiree, Slater keeps a close eye on his money and interest rates, because it can mean the difference between a good and bad year.

"We live on the interest, social security and interest. We're not investing any more because of the market," added Slater.

The bad economy has sparked some to save more. With the national savings rate jumping to near 5 percent.

Finance Factors, has taken advantage of the renewed interest in savings. By opening three new branches just in the past six months.

And this local company has hit on a winning formula during this recession. By not only providing financial services, but peace of mind to customers.

"I just asked the manager how do I know my deposit is insured by the FDIC? He gave me a code to go to a site, to make sure the bank doesn't close one day and we find out we weren't really a member of the FDIC. We want to be very sure about where our money is," said Slater.

It is important to not only make sure your deposits are federally insured, but to also make sure they are not over the limit. The federal government will only insure up to $250,000 in any one account.