Tuesday, February 14, 2012

92 Bank Closures In The U.S In 2011

Is it me, or is it just crazy that 92 banks in the U.S have shut down in 2011 alone. This number is less than in 2010, where 157 banks were closed. However, that's still a large number of bank closures.

What's extremely sad is the amount of individuals who have lost their jobs as a result of the closures. No job means mortgage payments aren't being paid, which of course ultimately leads to foreclosures. I never thought I would ever in my life time see such a catastrophe in the U.S economy.

The bank closure trend seems to be continuing. At the time of this post, 9 banks have already been shut down in 2012. So what does that mean for you as a customer who had a bank account with one of these banks. If your bank was insured by The Federal Insurance Corporation (FDIC), then you are protected for your deposits up to $250,000. FDIC has a tool on their website, where you can find out if the account that you had with a bank that has been closed is fully insured or not. Here is the link.  Look for your bank from the drop down menu and then click go.

Check out the table below from the FDIC website to see what qualifies for insurance.

FDIC Deposit Insurance Coverage Limits
by account ownership category

Single Accounts
owned by one person
$ 250,000 per owner
Joint Accounts
owned by two or more persons
$ 250,000 per co-owner
Certain Retirement Accounts
includes IRAs
$ 250,000 per owner
Revocable Trust Accounts
$ 250,000 per owner per beneficiary up to 5 beneficiaries (more coverage available with 6 or more beneficiaries subject to specific conditions and requirements)
Corporation, Partnership and Unincorporated Association Accounts
$ 250,000 per corporation, partnership or unincorporated association
Irrevocable Trust Accounts
$ 250,000 for the non-contingent, ascertainable interest of each beneficiary
Employee Benefit Plan Accounts
$ 250,000 for the non-contingent, ascertainable interest of each plan participant
Government Accounts
$ 250,000 per official custodian (more coverage available subject to specific conditions)

You may not have been a victim of one of these failed banks, but might be wondering if your current bank is insured under FDIC. Check out this website to find out if your bank is insured under FDIC, or contact your bank to find out. 

What is insured and what is not
  • FDIC insures checking accounts, which include money market deposit accounts. They also insure savings accounts and Certificates of Insurance.
  • FDIC does not insure mutual funds, annuities, stocks bonds and treasury securities.

Were you a victim of a bank closure?

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