FDIC: Savings' saving net
banking
What happens if your bank fails?

"We have to make sure that no one individual has more than the insured limit in that brokered deposit. So, for example, we have to make sure no one has a $300,000 CD placed at that broker. Secondly, we need the names of the individuals because we must cross-reference those names with the depositor base of the failed institution to make sure the brokered client didn't also have funds at the bank.

"If the bank closed and you had a $150,000 CD in the bank and then you gave your broker $150,000 to place in a CD and the broker put the money into that same bank, that one client would have $150,000 at the broker, $150,000 at the bank. We'd cross-reference, add those two together and insure only up to $250,000. So $50,000 of the brokered deposit would be uninsured. When we give the money to the broker, we'd keep back $50,000 and then provide a receivership certificate to that client for $50,000 that he or she would use later to obtain any additional money from the liquidation of the receivership."

10. Dormant accounts -- If there has been no activity for 18 months, your account will be turned over to your state as unclaimed property. Visit the Missing Money Web site or contact your state treasurer's office or your state's office of unclaimed property for more information on these funds.

11. IRAs -- Retirement accounts are transferred in their entirety and insured.

12. Loans -- If the acquiring bank doesn't take over your loan, the FDIC will hold it as it tries to find a buyer. If it succeeds, you'll be notified. Each loan is reviewed independently to determine the best action for the loan. If you're in the middle of, for example, a home improvement project and you need additional funding; it would not be unheard of to get it.

"We do, on a case by case basis, provide additional funds to some customers, but we have to take a look at the project," Barr says. "We'd have to make a determination that if we provided more funds, the value of that loan or the collateral would increase. If we feel that we'd just be throwing good money after bad, then we wouldn't fund any additional monies to that borrower. There are business decisions like that, that have to be made when the FDIC is running the bank as a conservator or a bridge bank."

If you want to find another lender and restructure the loan, do so. The FDIC would then release any collateral or transfer the collateral to the new lender.

13. Online services -- Online banking and bill pay would not be available over the period that the bank is closed, Barr says. A message at the bank's Web site will explain that the site is temporarily unavailable.

"Online banking and bill pay is taken down over the weekend. We don't want to have to constantly adjust for all these transactions that are hitting as we're trying to balance the books. Customers will know they can't access their online banking or bill pay until Monday when the bank reopens."

14. Overdraft line of credit -- The overdraft line is transferred to the new bank. Contact the bank if there is a problem or if you have questions.

15. Night deposit boxes -- You can drop money in them and it will be posted Monday.

16. Safe deposit boxes -- The boxes will not be accessible until the lobby reopens Monday.

17. Tax information -- The acquiring bank will be responsible for sending you your 1099 tax information. The FDIC will do 1098 reporting.

18. Trust accounts -- Accounts will be transferred to the acquiring bank.

The FDIC makes every effort to publish on its Web site a Q&A specific to each bank closing. If your bank fails, check the FDIC Web site frequently for the latest information.

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