|
 |
Home >> Accounts >> Certificates of Deposit
Interest on CD in Bank Takeover or Merger
When a bank takes over another bank, does it have to honor the interest rate on a CD?
|
|
 If the combining of the banks is a bank-to-bank merger or acquisition, the acquiring bank will honor the interest rate on any CD involved in the purchase through its maturity date. From that date forward, if the CD is rolled over, it will be at interest rates established by the new bank.
If a bank failure is involved and the FDIC negotiates a deal for the bank to be acquired by another bank, the acquiring bank may, in some cases, change a CD's interest rate. According to the FDIC's website, however, in such cases, the CD can be withdrawn without penalty. If you have questions about a specific merger or acquisition, contact the acquiring bank for detailed information.
Published on BankingQuestions.com 1/08/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
