What Happens to a Savings Account if a Bank Collapses?
By Mark Kennan, eHow Contributor
When a bank fails, most of the money in the savings accounts will be recovered by the account holders as long as the bank was covered by Federal Deposit Insurance Corp. (FDIC) insurance.
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Definition
FDIC insurance is a government-run program that protects consumers' bank accounts including savings accounts, checking accounts, money market deposit accounts and certificates of deposit in case a bank collapsing.
Mergers
In many cases, a failing bank gets bought buy another bank. If this occurs, your account will simply transfer to the acquiring bank.
Limits
In the event that a bank fails, the first $250,000 of your savings account will be reimbursed by the FDIC. The limit is set to return to $100,000 at the start of 2014.
Time Frame
According to Investopedia.com, you should receive your funds within a few days of the failed bank's closing.
History
No account holder has every lost funds insured by the FDIC since the FDIC was started in 1933.
SOURCE
By Mark Kennan, eHow Contributor
When a bank fails, most of the money in the savings accounts will be recovered by the account holders as long as the bank was covered by Federal Deposit Insurance Corp. (FDIC) insurance.
Related Searches:
Bank Credit Union
Bank Money Transfer
Definition
FDIC insurance is a government-run program that protects consumers' bank accounts including savings accounts, checking accounts, money market deposit accounts and certificates of deposit in case a bank collapsing.
Mergers
In many cases, a failing bank gets bought buy another bank. If this occurs, your account will simply transfer to the acquiring bank.
Limits
In the event that a bank fails, the first $250,000 of your savings account will be reimbursed by the FDIC. The limit is set to return to $100,000 at the start of 2014.
Time Frame
According to Investopedia.com, you should receive your funds within a few days of the failed bank's closing.
History
No account holder has every lost funds insured by the FDIC since the FDIC was started in 1933.
SOURCE
