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Home >> Keeping Your Money Safe
Bank Failure and FDIC Insurance
If my bank does not have an original signature card agreement for a deposit on file, is the account insured with the FDIC? If the bank mails me the card and I have possession and the bank fails, can I prove I hold the deposit agreement? Will a copy be sufficient if the original document cannot be located? In each intance, will I get paid the deposit amount of insurance up to $250,000? If so, how long does this take to process my funds back to me if my bank fails?
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 Very few bank failures result in actual payouts from the FDIC, because in most cases another stronger bank assumes all of the deposits of the failed bank. In those few cases in which the FDIC does pay insured depositors, the process is completed within a few days of the closing of the bank's doors. As you have noted, your deposits would be covered up to $250,000, and there are ways to structure your accounts that provide additional coverage.
Specific questions concerning the technicalities of coverage can only be answered by the FDIC itself. However, it's likely that the FDIC would honor a copy of a signature card, because many banks use image files exclusively. Complete and return any signature card promptly to ensure that the bank has it on file, just to remove any barrier to being covered.
Published on BankingQuestions.com 11/03/09
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