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What would it be like if my bank were to close down?

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  • #1

    What would it be like if my bank were to close down?

    What would it be like if my bank were to shut down?

    Of course, my account is federally insured, but I need access to my money for bills every month.

    What kind of turn-around on my personal bail-out (FDIC) do you suppose there might be?
    "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

    "It is easier to build strong children than to repair broken men." --Frederick Douglass
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  • #2
    Silly to answer my own question, but I did find some info at fdic.gov, including this astounding line, "It is the FDIC's goal to make deposit insurance payments within one business day of the failure of the insured institution." Wow!

    Still I would like to hear what you all suppose and know. There are a few bank failures every year, so perhaps someone here has been through it.
    "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

    "It is easier to build strong children than to repair broken men." --Frederick Douglass

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    • #3
      Joan, I've been slightly affected by this with two internet-only banks.

      I had a NextBank credit card which kept turning up on my credit reports long after they went out of business. It was hard to figure out who to contact about it, since their offices no longer existed. But it finally dropped off.

      I had a money market account with Netbank, but I'd read in the news the closure was coming and had some time to act.

      It was first supposed to be taken over by Everbank. I didn't like their account features, so I just closed out the Netbank account before it was to be switched. ING ended up taking them over; if you google ING and Netbank you'll see some people saying it went smoothly, and other people complaining. I guess in any bank merger or takeover there are bound to be some problems, even if it's not due to a failure.

      There are a couple of interesting blog entries from people who've been through a lot more than me. This one from The Finance Buff has a very interesting link at the bottom to Frugal Frugalson, who actually had his credit and debit cards rejected because of a sudden bank failure.

      I guess this is one reason I feel like it's really important to keep up on financial news--I don't want to be totally surprised by something like this.

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      • #4
        My main bank was Netbank. I was very impressed with how FDIC handled the transfer to ING. I don't know how they could have done a faster/better job at it. Basically the bank shut down on Friday evening and re-opened Sunday with ING running netbank.

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        • #5
          I think my main bank (Wachovia) is in the "too big to fail" category. I'm more concerned if the bank I work for fails, because my job would be on the line/

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