Thursday, August 6, 2020

What Happens To Your Uninsured FDIC Money When A Bank Gets Taken Over?

In the case of IndyMac, they got 50% of their money back. That is fortunate compared to what others got:
Each bank failure is unique, he added, For instance, customers of A&B Financial in Arkansas received 25 percent of their uninsured money from the FDIC; in Nevada, customers of Silver State Bank recouped just 11 percent of their uninsured funds.
I operated under the wrong assumption that no one lost money during the closures because of the kind of panic it would cause. Now I know better and have to do some adjustments. 

Note that opening multiple bank accounts at the same bank won't necessarily help.

Maybe just finding a bank "Too Big To Fail" will help. But even that is no guarantee if the losses are too much. 

1 comment:

  1. Last I knew, FDIC insurance was per account title. So to maximize protection you either had to spread across banks, across account titles (indv, joint, trust, business, etc), or both.