Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Comments and Questions

How a Bank Failure Can Impact Your CD Rates and Terms

Tuesday, February 23, 2010 - 6:39 AM
When a bank fails, the FDIC only guarantees that you will receive insured principal and accrued interest up to the day of closure. If another bank takes over the deposits, that bank is free to not only change the existing CD rates, but to make other changes to the CD terms. However, the new bank must allow you to make a penalty-free early withdrawal. Details of these requirements are described in Dr. Don's answer to a reader's question at Bankrate.com.

Unfortunately, the article doesn't help answer what are the rights of a CD holder in regards to a changing CD account disclosure by a bank that hasn't failed, as in the case of Darby Direct.
1
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,664
Reply