CDs are protected3 of 7If 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." Related Articles:Guard against bank failureMoney market account time?2010 list of failed banksChecking account do's and don'tsRelated Links:137 banks failed in '09FDIC handles bank crashes3 tips for personal bank loansIs your money market fund safe? advertisement
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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