checking

What to expect from your failed bank

What if my bank fails?
Next
1 of 7
text

More than 150 American banks have failed this year as of Dec. 17, and more bank failures are expected as the financial crisis continues. But the government's takeover of a failed bank has been a standard operating procedure for some time.

"History is pretty clear," says Gary Evans, president and CEO of Palm Desert National Bank in Palm Desert, Calif. "Insured accounts are either paid out soon after a bank closes or the account is assumed by a purchasing bank. The FDIC website states that no insured account has ever lost money."

Even though the Federal Deposit Insurance Corp., or FDIC, has developed a well-oiled process for taking over failed banks, the news of such a takeover can be disconcerting to the bank's customers. A failed bank doesn't mean your money is lost. But what can you expect?


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

How often to compound interest?

Dear Dr. Don, Is it better to have interest compounded on your money daily, monthly or quarterly? Which gives you the most for your money invested? Thanks, -- Jan Juxtapose Dear Jan, With all else being equal, the more... Read more

advertisement
Partner Center
advertisement

Connect with us