In the wake of the unprecedented troubles of many of the nation's largest financial institutions such as Washington Mutual and Wachovia, many Americans are worried about the safety of their banks. Those fears may be warranted depending on whom you bank with, but most South Florida banks are well capitalized and should weather this economic storm. Moreover, many banks -- especially the community banks -- did not participate in subprime loans, lessening the blow being suffered by many of the larger banks and investment banks.

IN THE COMMUNITY

Community banks are generally known for their conservative lending guidelines, and they make it a point to truly know their customers. Most community banks did not stray from those principles over the past few years. Indeed, community banks are still lending, accepting new deposits, and people are beginning to realize that perhaps the safest place for their money may be with the local community banks in their neighborhoods.

No matter where you bank, you should do some homework. For starters, check a bank rating service such as BauerFinancial.com or TheStreet.com to measure the health of your bank. If you are considering moving banks, you may also want to ask colleagues or friends for a referral. If you don't have a trusted, personal banker, perhaps it is time to find one.

CHECK FDIC COVERAGE

Also, make sure your deposits are fully covered by the FDIC. The FDIC just raised the coverage limit to $250,000 per depositor, per bank. For a single depositor, that means the FDIC insures all of your deposit accounts such as checking, savings, money

markets and certificate of deposit accounts up to $250,000 per bank. The FDIC also provides an additional $250,000 per person for retirement accounts.

You can increase the amount of coverage, however, through creative titling of your accounts. For example, a depositor's interest in funds held in joint accounts is counted separately for FDIC purposes. Thus, a joint account between husband and wife is insured for $500,000 ($250,000 per spouse). You can obtain further coverage by naming beneficiaries to your accounts. Formerly, those beneficiaries had to be ''qualified,'' which means a close relative, but the FDIC excluded that caveat last month. Now anyone can be a beneficiary.

POD ACCOUNTS

When you name beneficiaries to your bank account, you create what is known as a ''Totten'' trust or a ''payment on death'' (POD) account. POD accounts are informal trusts and thus, when the account holder dies, the funds in the account are automatically distributed to the named beneficiaries without the need for probate, similar to an insurance policy or an IRA.

FDIC issues can be complex, so if you don't have a trusted personal banker, perhaps this is the time to find one. For those with over $250,000 at a single bank, you should also visit www.fdic.gov and use their online calculator to relieve any doubts as to your coverage.

Joshua E. Young is executive vice president and general counsel for Turnberry Bank. Founded in 1985, Turnberry Bank operates banking centers in Pinecrest, Coral Gables, South Miami and Aventura.

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