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Home >> Keeping Your Money Safe
Bank May Be Closed: Move Money Now?
I am a customer with a checking and savings account in a locally owned bank. They have been struggling financially and rumors are that the FDIC is coming in after business hours tomorrow. Do I need to remove my money from this bank? Are my funds or the ability to access my funds in jeopardy?
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 The FDIC insures deposits up to $250,000 per depositor right and capacity. That means that you can have $250,000 in your individual name and up to $250,000 in ownership interest in joint accounts, all of which would be fully insured. In addition, there are other ways you can hold funds that can increase your insurance coverage. If your account balances are below those limits, you shouldn't experience any problems.
In the case of the Community Bank of West Georgia, that closed recently, the FDIC was unable to identify a bank willing to take over the failed institution. The bank was closed on Friday, June 26, and the FDIC planned to send out checks to insured depositors on Monday, June 29. The FDIC's initial information suggested that there were about $1.1 million in uninsured balanced at that bank.
It was interesting to see that the FDIC even worked with the Treasury Department and the Federal Reserve Bank to reroute federal direct deposit payments for customers of Community Bank to another bank in the area, to minimize any delay in access to those funds, which include Social Security and Veterans Administration retirement payments. The $250,000 figure is effective through the end of 2013. After that, current law resets it to $100,000. There are a number of articles and Q&A pages dealing with FDIC coverage in this Keeping Your Money Safe section.
Published on BankingQuestions.com 7/03/09
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