What happens to your accounts if the bank fails? |
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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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