 |
Did anyone ever have to use the FDIC insurance on a CD?
06-10-2008, 02:12 PM
|
#1
|
Recycles dryer sheets
Join Date: Jul 2007
Posts: 346
|
Did anyone ever have to use the FDIC insurance on a CD?
I have some local banks that offer CD's that have a decent rate and they are FDIC insured but I don't have a lot of faith in these banks.
What I'm curious about is if anyone actually bought a CD and had the bank of whoever issued it fail for whatever reason. Then had to rely on the FDIC insurance how that it worked out as far as if you actually recovered your money and if so how much of if and how long that it took?
Thanks
Jim
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-10-2008, 02:32 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 5,596
|
Usually, when a bank is failing, the FDIC finds a merger partner so this is not an issue. Otherwise, you will be covered by FDIC deposit insurance. Just make sure you keep within the insured limits - $100,000 for regular accounts and $250,000 for IRAs. The insured limit is higher if you have several accounts with qualified family members. Check the FDIC website to calculate your total insurance coverage here: FDIC: Electronic Deposit Insurance Estimator (EDIE) – Online Version
__________________
I purr therefore I am.
|
|
|
06-10-2008, 04:28 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
|
Basically, bank A (where your money is) closes at COB Friday and on Monday morning the accounts of closed bank are at the successor bank. Your money should be fine and available to you at the successor bank on Monday. Works the same way for Credit Unions. I understand that if within the limits, as previously mentioned, your money is immediately available - if outside the limits it is not gone, but it will take some time to get back to you.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
06-10-2008, 05:51 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,525
|
No experiences with FDIC, but I had some acquaintances who went through the transfer drill with a Texas savings & loan that went belly up. The federal insurer at the time (FSLIC?) stepped right in and sent the accounts to a new institution.
I remember that access to funds was restored with little or no delay. What I don't recall is whether the outfit inheriting the CD honored the original term and rate.
|
|
|
06-10-2008, 06:27 PM
|
#5
|
Recycles dryer sheets
Join Date: Nov 2007
Location: a suburb somewhere
Posts: 54
|
Yes, We had a CD in a local bank in the late '80s. When it came due I stopped by to pick up a check and was met at the door by a federal agent wearing a side arm. When I stated my business, to pick up my money, he said "not today". We received a check for our full balance from the FDIC in less than a week.
|
|
|
06-10-2008, 09:11 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
|
Just this week!
We had a few clients with brokered CDs in ANB Financial. They went belly up about a month ago. FDIC paid out all the principal and interest last Friday.
|
|
|
06-10-2008, 11:11 PM
|
#7
|
Recycles dryer sheets
Join Date: Aug 2007
Posts: 433
|
Quote:
Originally Posted by saluki9
Just this week!
We had a few clients with brokered CDs in ANB Financial. They went belly up about a month ago. FDIC paid out all the principal and interest last Friday.
|
Did the interest include the time between the failure and when the check was actually received. In other words, were your clients out a months-worth of interest while the check floated to them?
__________________
Consult with only myself as your adviser or representative. My thoughts should be construed as investment advice of the highest caliber. Past performance is but a pale shadow and guarantee of even greater results in the future.
|
|
|
06-11-2008, 06:01 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
|
Quote:
Originally Posted by barbarus
Did the interest include the time between the failure and when the check was actually received. In other words, were your clients out a months-worth of interest while the check floated to them?
|
no, but that usually isn't a very long time.
When Netbank bought it a year or so ago our clients had their checks in 10 days or less. ANB was a tricky one and it took them a little longer. I've heard from some other people at our custodian that the FDIC has actually paid out some people in full who had more than 100K.
|
|
|
06-11-2008, 12:57 PM
|
#9
|
Recycles dryer sheets
Join Date: Jul 2007
Posts: 346
|
Wow thanks everyone!
I would not have guessed that you would get your money back so quick...it looks like you do get some really good protection with the FDIC!
Jim
|
|
|
06-11-2008, 02:07 PM
|
#10
|
Confused about dryer sheets
Join Date: Feb 2008
Posts: 1
|
The true test of the FDIC and it's ablity to provide protection can only be evaluated if there is a banking crisis. What is going on now cannot be considered a problem period.
|
|
|
 |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|