Comments on: What will happen to the interest earned in a Certificate of Deposit if a bank closes? http://www.1stdeposit.net/personal-finance/what-will-happen-to-the-interest-earned-in-a-certificate-of-deposit-if-a-bank-closes/ Information about certificates of first deposit Fri, 18 May 2012 19:52:36 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: 1st deposit http://www.1stdeposit.net/personal-finance/what-will-happen-to-the-interest-earned-in-a-certificate-of-deposit-if-a-bank-closes/comment-page-1/#comment-153 1st deposit Mon, 14 Dec 2009 04:52:39 +0000 http://www.1stdeposit.net/personal-finance/what-will-happen-to-the-interest-earned-in-a-certificate-of-deposit-if-a-bank-closes/#comment-153 <a href="http://www.1stdeposit.net">1st deposit</a> I believe that the FDIC corp would have to pay you 100% of your principal and interest accrued to date at the time you request it. It may take a couple of days, but you shouldn't have to wait for the CD to mature. 1st deposit

I believe that the FDIC corp would have to pay you 100% of your principal and interest accrued to date at the time you request it. It may take a couple of days, but you shouldn’t have to wait for the CD to mature.

]]> By: 1st deposit http://www.1stdeposit.net/personal-finance/what-will-happen-to-the-interest-earned-in-a-certificate-of-deposit-if-a-bank-closes/comment-page-1/#comment-152 1st deposit Sun, 13 Dec 2009 21:31:38 +0000 http://www.1stdeposit.net/personal-finance/what-will-happen-to-the-interest-earned-in-a-certificate-of-deposit-if-a-bank-closes/#comment-152 <a href="http://www.1stdeposit.net">1st deposit</a> Hi, The FDIC will insure the entire amount of the principal and accrued interest. You will be able to claim all of the money you ought to have been entitled to, up to $100,000. As to whether you have to wait until the CD matures, you probably will. Otherwise you will incur the normal penalties that will be on the CD agreement. Depending on the situation, it's possible that the FDIC would simply give you the cash amount of the CD but I suspect they would try to hold onto the assets as you're contractually obligated to allow the bank to hold them. And the last thing the FDIC wants when propping up a failed bank is even more of a bank run. Good luck! 1st deposit

Hi,

The FDIC will insure the entire amount of the principal and accrued interest. You will be able to claim all of the money you ought to have been entitled to, up to $100,000.

As to whether you have to wait until the CD matures, you probably will. Otherwise you will incur the normal penalties that will be on the CD agreement. Depending on the situation, it’s possible that the FDIC would simply give you the cash amount of the CD but I suspect they would try to hold onto the assets as you’re contractually obligated to allow the bank to hold them. And the last thing the FDIC wants when propping up a failed bank is even more of a bank run.

Good luck!

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