If anyone remembers what's it's like when a bank goes belly-up and you have to deal with the feds to get your insured deposit back? – please share.
FDIC issues checks usually within 48-72 hours after a bank failure. A bank failure is when either a bank can't pay a depositor or there is a high probability it can't pay. It is a smooth transaction – the only caveat being you get only the insured amount.
For those that don't know it can take upwards of 6 months after a bank is shut down to get your money back from the feds – in addition you only get the principle – all interest is forfeited.
Not true. You get what you are owed, subject to insurance limits. I am not sure if FDIC will give you interest not already in your account. They send out only a handful of regulators and they can't run every banks computer system to calculate up to date interest. Besides, they sometimes keep computer systems for forensic evidence and wouldn't touch it even if they knew how to run the system.
BTW, I opened an account & made a deposit for 5.5% savings. I did some work for RTC during S&L crisis.
