4 ms·

When we talk about 250k in bank accounts being insured by the FDIC, what does that mean? If a bank went bankrupt, how fast would it take for me to get my 250k b

by herge 11y ago

When we talk about 250k in bank accounts being insured by the FDIC, what does that mean? If a bank went bankrupt, how fast would it take for me to get my 250k back from the government?

dsr_ 11y ago
https://www.fdic.gov/consumers/banking/facts/payment.html https://www.fdic.gov/consumers/banking/facts/payment.html says "When there is no open bank acquirer for the deposits, the FDIC will pay the depositor directly by check up to the insured balance in each account. Such payments usually begin within a few days after the bank closing."
- deleted 11y ago
  [deleted]
dragonwriter 11y ago
> If a bank went bankrupt, how fast would it take for me to get my 250k back from the government? The FDIC's target is two business days from the failure of the bank. [0] IIRC, though, most actual bank failures have resulted in a different FDIC-insured bank taking over all or virtually all deposits, so while bank failures happen all the time, FDIC insurance payouts rarely need to occur. [0] https://www.fdic.gov/consumers/banking/facts/payment.html https://www.fdic.gov/consumers/banking/facts/payment.html
- toomuchtodo 11y ago
  If you're interested, there's an unofficial "problem bank list". Its unofficial because the FDIC doesn't want to create a run on a problem bank. http://problembanklist.com/problem-bank-list/ http://problembanklist.com/problem-bank-list/
mywittyname 11y ago
It's transparent; bank failures happen all the time and account holders rarely notice. The FDIC can broker a transfer of assets from a failed bank to a buyer over a weekend.
peter303 11y ago
Most of the 450 banks that failed 2009-2012 were immediately sold to other banks. This typically happened on Friday with FDIC clerks working all weekend to record the books and start merging computers. Typically your money was available the following Monday. And depositors were not aware of the what happened until they saw the bank name change. And usually amounts over $250K were still good in this process. A small number of banks could not attract buyers, so the FDIC fowarded your deposit to an account you specified. I recalled that may have taken a few weeks. Very few over $250K accounts were dinged. One of the TV new magazines followed the FDIC on one of these Friday missions. That was good publicity to calm the public. I recall at the height there could have been a FDIC personal crunch. It took a few weeks to complete the transfer process and I think they only had a dozen teams or so.
- aianus 11y ago
  > FDIC personal crunch You're looking for "personnel" here.

by herge 11y ago

When we talk about 250k in bank accounts being insured by the FDIC, what does that mean? If a bank went bankrupt, how fast would it take for me to get my 250k back from the government?

dsr_ 11y ago

https://www.fdic.gov/consumers/banking/facts/payment.html https://www.fdic.gov/consumers/banking/facts/payment.html says "When there is no open bank acquirer for the deposits, the FDIC will pay the depositor directly by check up to the insured balance in each account. Such payments usually begin within a few days after the bank closing."

deleted 11y ago
[deleted]

dragonwriter 11y ago

> If a bank went bankrupt, how fast would it take for me to get my 250k back from the government? The FDIC's target is two business days from the failure of the bank. [0] IIRC, though, most actual bank failures have resulted in a different FDIC-insured bank taking over all or virtually all deposits, so while bank failures happen all the time, FDIC insurance payouts rarely need to occur. [0] https://www.fdic.gov/consumers/banking/facts/payment.html https://www.fdic.gov/consumers/banking/facts/payment.html

toomuchtodo 11y ago
If you're interested, there's an unofficial "problem bank list". Its unofficial because the FDIC doesn't want to create a run on a problem bank. http://problembanklist.com/problem-bank-list/ http://problembanklist.com/problem-bank-list/

mywittyname 11y ago

It's transparent; bank failures happen all the time and account holders rarely notice. The FDIC can broker a transfer of assets from a failed bank to a buyer over a weekend.

peter303 11y ago

Most of the 450 banks that failed 2009-2012 were immediately sold to other banks. This typically happened on Friday with FDIC clerks working all weekend to record the books and start merging computers. Typically your money was available the following Monday. And depositors were not aware of the what happened until they saw the bank name change. And usually amounts over $250K were still good in this process. A small number of banks could not attract buyers, so the FDIC fowarded your deposit to an account you specified. I recalled that may have taken a few weeks. Very few over $250K accounts were dinged. One of the TV new magazines followed the FDIC on one of these Friday missions. That was good publicity to calm the public. I recall at the height there could have been a FDIC personal crunch. It took a few weeks to complete the transfer process and I think they only had a dozen teams or so.

aianus 11y ago
> FDIC personal crunch You're looking for "personnel" here.