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What to expect from your failed bank

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If you own a certificate of deposit held at a failed bank, your account is insured up to $250,000 by the FDIC. Time deposit CDs will still mature at the same time as your original agreement because it is a legally binding agreement, Alverson says.

Evans says CD owners need not do anything special, but should certainly watch the mail for notices. "Sometimes an acquiring bank will lower the rate," he says. "If the bank is closed out, depositors will be sent a check, generally within a week."


 

 

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