What's New

***** At last ***** 

A Checking Account for those who had overdraft issues at other banks

• New Independence Checking

A second chance for those with previous credit problems

Minimum opening balance is $25.00

Monthly maintenance fee is $8.00

Duplicate checks issued with this account to help funds to be easily managed

Unlimited check usage

Sign up for direct deposit & money is available the same day

Stop by a branch to open an account

Promotional Offers and Special Rates

Down Payment Assistance
Independence Federal Savings Bank now offers a new "First Time Home Buyers Program" for the Washington, DC, Metropolitan area. Eligible applicants may receive up to $5,000 in down payment and closing costs. For further information please contact a Loan Specialist at 202-628-5500.

Check21 and You

Substitute Checks and Your Rights

Federal rules for Check21 took effect in October, 2004, and allow banks to replace original checks with ?substitute checks.? Here are the details about what this means to you.

What is a substitute check?

To make check processing faster, federal law permits banks to replace original checks with "substitute checks." These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." You may use a substitute check as proof of payment just like the original check. Some or all of the checks that you receive back from us maybe substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in the notice do not apply to original checks or the electronic debits to your account. However, you have rights under other laws with respect to those transactions.

What are your rights regarding substitute checks?

In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money form your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees). The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other laws. If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim. We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How do you make a claim for a refund?

If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us by mail to 1301 9th Street NW, Washington DC 20001. Or you may telephone us at 202-628-5500. Or you may email us at information@ifsb.com (or you may click Contact Us on this web page). You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute was posted to your account, whichever is later, we will extend this time period if you were not able to make a timely claim because of extraordinary circumstances. Your claim must include:

* a description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);

* an estimate of the amount of your loss;

* an explanation of why the substitute check you received is insufficient to confirm that you suffered a loss, and;

* a copy of the substitute check, and/or the following information to help us identify the substitute check:

- the check number

- the name of the person to whom you wrote the check

- the amount of the check.

21st Century Check Processing

Understanding Myth & Fact

The paper check will remain a vital part of the United States? payments system for the foreseeable future. Consumers will continue to be able to use paper checks because the banking industry is designing a 21st century system that allows paper to work in an electronic world. More and more checks are being processed electronically every day through the use of electronic check conversion and check truncation. Electronic check conversion is the process of changing an original paper check to an electronic payment. Check truncation is the process of removing an original check from the clearing process while sending forward only the information necessary to make your payment. Here are the facts.

Check21 and Electronic Check Conversion are similar, but not the same.

News about the new federal Check21 law and the use of ?substitute checks? often becomes confused with an alternative method of check processing called ?electronic check conversion.? With electronic check conversion, businesses may choose to convert your check into an electronic payment similar to a debit card transaction that is known as an ACH transaction. These transactions appear on your statement with other electronic debits such as ATM withdrawals and automatic direct debit transactions (e.g. health club dues, telephone bills, monthly investment contributions, etc.). The consumer rights associated with an ACH transaction are similar to those provided in Check21.

Paper checks continued to be processed after October 28th 2004.

Most consumers did not receive very many substitute checks with their monthly account statements. It gradually grew. On March 31, 2006, Independence Federal began providing images of checks paid, accessible through online banking.

Check21 will help combat payments fraud.

The faster collection and return of checks made possible by Check21 should reduce overall fraud in the check collection system. Banks will be able to collect and return checks faster and utilize new image analysis fraud tools to help identify fraud and errors more quickly.

Check21 does not require all checks to be truncated.

Check21 simply allows for the creation and legal equivalency of a substitute check that complies with rigorous industry standards for image quality and completeness.

Consumer rights are protected.

Losses in check fraud cases are typically borne by the bank or the merchant that dealt with the person who transferred a fraudulent check, not the consumer.