We've added a new section at DepositAccounts.com for Bank Health Ratings. This is intended to make it easy for you to learn about the financial health of your bank or credit union. The "Bank Health Ratings" link is now in the sub-menu under the "Bank Reviews" menu.
At the Bank Health Ratings page, just type in the name of you institution in the search box, click the search button, and it will take you directly to the financial health page for your institution. If the name you provide is not precise enough to narrow down the search to one institution, it will provide a list of possible institutions that you can select.
In addition to the search box, the Bank Health Ratings page includes summaries of my latest banking news and links to important FDIC and NCUA topics. At the bottom of the page, we list our ratings and Texas Ratios for some of the most popular internet banks. Note, for institutions like SmartyPig, the ratings are based on the bank that holds the deposits. For the case of SmartyPig, it's BBVA Compass.
Already Updated with the Latest FDIC Data
Both the FDIC and NCUA have just recently released financial data for each institution they insure for June 2010. My technical partner has already finished pulling in this data for all the banks and credit unions. Our health ratings are based on the latest data publicly available. It often takes Bankrate around two months to update its ratings.
Our health rating system measures an institution's health from a scale of 0 to 5 in which 5 is the most sound. The Texas Ratio and its trend are major components of this score, and you can review these numbers along with the other components of the score. Miranda's article on how to Evaluate the Health of Your Bank describes the Texas Ratio and the other components that we use in deriving the health score.
In addition to the health scores, we list many of the institution's financial numbers including assets, loans and deposits. Plus, we provide links to the institution's FDIC or NCUA page and a link to Bankrate's report.
Why You Should Care about Your Bank's Financial Condition?
It's true that if your deposits remain under the FDIC and NCUA coverage limits, you don't have to worry about losing your money. However, there are other reasons to be concerned about the financial health of your institution. For one, it may affect the future rates of your CD and reward checking accounts. I described many of these reasons and provided other bank rating resources in my post on the Best bank ratings services and why you should care.