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Two More Bank Failures: Century Security Bank in GA & Advanta Bank Corp. in UT

Friday, March 19, 2010 - 4:44 PM
This makes three bank failures so far today and 33 for the year. The FDIC couldn't find a buyer for Advanta Bank Corp. According to the FDIC press release
The FDIC was unable to find another financial institution to take over the banking operations of Advanta Bank Corp. As a result, checks to depositors for their insured funds will be mailed on Monday.
Century Security Bank of Georgia was the other bank to fail, but the FDIC was able to find a buyer. I'll have more in tonight's bank failure review.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,754
1. Friday, March 19, 2010 - 10:07 PM
It was only a matter of time for the Advanta Bank failure to occur. My 4 year 5.60% APY CD with the bank was maturing this year anyway. Gee, I wonder what a FDIC check looks like.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
2. Saturday, March 20, 2010 - 2:47 PM
At least you won't be missing out on much interest. Please let us know how quickly the check arrives. And let us know if your local bank places a hold on the check. I remember one reader who said his bank placed a 10-day hold on the FDIC check.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,754
3. Sunday, March 21, 2010 - 11:15 AM
Will do Ken. Thanks for the heads-up on what to look forward to. Ack!
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
4. Sunday, March 21, 2010 - 12:42 PM
I too am expecting a large check in the mail from them and was wondering if I might be facing a hold even through my established relationship at a local bank.  I expect that will vary from one financial instution to the next.  Having several to choose from might actually be advantageous in this situation. 

I logged into Advanta and the value shown is reflecting the same value reported on December 31, 2009.  I sure hope I/we receive interest earned since then, but I'm not holding my breath.  Are they required to pay unearned interest since the last amount posted to the account?
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
5. Sunday, March 21, 2010 - 12:53 PM
Well I just did some additional reading/research and found this so maybe they will pay unearned interest up to Friday.....

11. Interest: Will I continue to earn interest at the same rate? No. All interest on insured deposits accrued through Friday, March 19, 2010, will be paid at your same rate. This will be included in the deposit insurance check you will receive from the FDIC. No interest will be paid after March 19, 2010.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
6. Monday, March 22, 2010 - 2:02 PM
The FDIC had a glitch on their web site regarding the Advanta Bank closure. http://www.fdic.gov/bank/individual/failed/advanta-ut.html

There is a Section III, where one can enter their account number, to see if all their funds are covered by the FDIC insurance. Even though I knew mine were, I decided to try it out. The result is a "invalid account number" message. After three calls to the FDIC they finally admitted there was a problem and they are fixing it. One CSR at the FDIC finally gve me a number to call at Advanta to speak with one of the FDIC personnel. She confirmed that a check would be mailed out for my funds, today, including all the interest earned through March 19th.

I'll be relieved when the check shows up, my local bank accepts the check, and the funds are deposited into my checking account.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
7. Wednesday, March 24, 2010 - 8:51 PM
My check arrived today...postmark says mailed from zipcode 75201 (Dallas).  My bank was going to hold the check for 5 business days.  I found another local bank offering CD's for 3.43 APY so that's where my money is now.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
8. Thursday, March 25, 2010 - 8:02 AM
@KCMO, Thanks for the update. Glad to read the check arrived early.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,754
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