As I mentioned on Friday after the FDIC announced the closure of Waterfield Bank, both UFB Direct and AARP Financial Savings Center had used Waterfield Bank to hold their customers' deposits. It appears that both are shutting down. I sent an email to the AARP Financial Savings Center asking about how this will affect them and their customers. Here is the reply I received:
Waterfield Bank was closed Friday March 5, 2010, by the Office of Thrift Supervision. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. The FDIC will fulfill its obligations to Waterfield Bank depositors.
Depositors of the former Waterfield Bank will be able to conduct most of their banking business as usual until they transfer their deposits to another financial institution.
Certificate of Deposits accounts that were placed at Waterfield Bank, insurance checks for their certificates of deposits will be mailed on Monday, March 8, 2010, to addresses on record with Waterfield Bank.
Checking & Savings Accounts will have continued access to their accounts until April 5, 2010. Customers are encouraged to open new accounts with another institution as soon as possible. Any automatic transactions, including social security checks and automated payments, should be transferred to the new institution. Customers who do not move their accounts by Monday, April 5, 2010, will be mailed checks for any remaining insured deposit balances to the mailing address on record with Waterfield Bank and all automatic transactions will stop.
Regards, Customer Care
I also sent an email to UFB Direct, but I haven't received a reply. However, Fatwallet member sfchris reported a very similar memo posted at UFB Direct's website. It appears that it must only be viewable for customers who log in. A FDIC closure page was posted at UFB Direct's website over the weekend. The website appeared back to normal this morning. However, there was a change this afternoon. You can tell there's a problem by the look of UFB Direct's front page:
0.00% APY One of the Highest Rates in the Country!
Interest rates may be low, but fortunately they're not that low! I guess since the bank is temporarily operating under the FDIC, no interest will be paid. If you're an UFB Direct customer, this is another reason not to delay in moving your money.
I'm sorry to see the loss of UFB Direct and AARP Financial Savings Center. I've been reporting on UFB Direct since I started the blog back in 2005. UFB Direct's new US Savings Account rate had been holding up well. AARP's rate had fallen to near 1% many months ago so this isn't quite as disappointing.