My bank failed....now what?

First of all, don't panic!

More than likely, all of your accounts will transfer immediately to a new bank with stronger financials. The name will change, but the people will not. You can walk into the branch the next day and see the same staff. The acquiring bank is very interested in maintaining continuity with your accounts and very interested in making sure you remain a satisfied client.

I know what you're thinking though.....What happens to my money? Will I be able to pay my bills? Can I use my ATM card? How do I get peace of mind?

Step by step, here is what will happen if your bank is closed by the FDIC and then "sold" to a new organization:

1. The bank will be formally closed by the FDIC at close of business, usually 5:00pm on a Friday.

2. At 5:01pm that same day, your bank will be assumed by a new bank with strong, solid financials and a commitment to your geographic area.

3. All ATM cards are immediately active with the new bank (yes, you can buy groceries and gas)

4. All checks written on your account are still valid (provided there are sufficient funds in your account).

5. All direct deposits are still processed and accessible as usual.

6. All bills set up for payment through online banking will continue to be processed as usual.

7. All online banking activities will be accessible with the same login/password combinations

8. All loan accounts will still be active at the rates and terms in place at the original bank (sorry, a bank failure does not mean you can stop paying your loan!)

Again, don't panic. Very little will change on your accounts. Your new bank will begin sending you all the detailed information you will need to make an educated decision. You will be given time to make changes to your account and you will have access to bank staff immediately. It's typically business as usual for all parties involved.

In banks we trust......

Sincerely,
loose change