Insured Deposits: A Crucial Foundation for Business Stability

Jeff Schelter Headshot

Jeff Schelter

August 10, 2023

In today’s ever-changing market conditions, the significance of insured deposits cannot be overstated for businesses striving to maintain stability and security. For more than 20 years, Alliance Bank of Arizona, a division of Western Alliance Bank, member FDIC, has demonstrated the strength and resilience of its offerings, proving to be a reliable partner for business customers’ funds.

Growth Through Trust & Confidence

A recent update released by Western Alliance revealed that, despite the challenges posed by market fluctuations and heightened volatility, deposits grew significantly, indicating the trust customers place in the bank’s insured deposit products. 

As of July 17, Western Alliance reported quarter-to-date deposit growth of $3.5 billion, up from $51.0 billion as of June 30. Insured deposits constituted approximately 81% of total deposits, representing a significant rise from 68% in the previous quarter.

The Power of Insured Deposits

The importance of insured deposits lies in the safeguard they offer to businesses. By opting for insured deposit accounts, businesses can shield their funds against potential risks and unforeseen events. 

Notably, in the U.S., the Federal Deposit Insurance Corporation (FDIC) provides insurance coverage of up to $250,000 per depositor, per insured bank for each account ownership category. This means that, should a business hold its funds in an insured deposit account and the bank encounter insolvency, the FDIC would reimburse the business up to the insured limit, ensuring the preservation of its deposits.

Contributing to Systemic Stability

Beyond the individual benefits to businesses, insured deposits also contribute to the overall stability of the banking system. By incentivizing businesses to deposit their funds in insured accounts, this practice helps maintain liquidity and instill confidence in the broader banking sector.

The readily available liquidity offered by Western Alliance helps ensure businesses have convenient access to their funds whenever required, amplifying the appeal and advantages of insured deposits.

Peace of Mind & Financial Security

Insured deposit products also provide businesses with invaluable peace of mind and serve as an essential safeguard during economic fluctuations. As part of Western Alliance Bank, the resilience of Alliance Bank of Arizona and our insured deposit offerings becomes even more apparent.

While other regional banks experienced significant drops in deposit levels, Alliance Bank of Arizona’s deposits remained healthy. This indicator further solidifies the trust our customers place in our ability to protect their funds.

A Commitment to Nurturing Strong Customer Relationships

Alliance Bank’s success in expanding its insured deposits underscores its commitment to nurturing strong customer relationships and providing a secure financial environment. Businesses are increasingly recognizing the paramount importance of safeguarding their funds, and Alliance Bank’s insured deposit products, through Western Alliance Bank, offer a dependable solution that meets these pressing needs. 

By offering comprehensive insurance protection and upholding stability even during tumultuous periods, Alliance Bank wholeheartedly supports businesses seeking financial stability and enduring well-being in an ever-changing and unpredictable world. 

About Jeff Schelter

Jeff Schelter is Managing Director of Commercial Banking for Alliance Bank of Arizona, where he leads commercial and industrial banking teams throughout the Phoenix Metropolitan area and Northern Arizona. In his role, he helps companies develop tailored financing and cash management needs to meet their short-term and long-term objectives. Jeff can be reached at [email protected].