FDIC repayment schedule

shay13February 18, 2009

If a bank goes under and it's deposits are not transferred to another bank, and the FDIC will be making restitution: how long does it take to get reimbursed? Does the FDIC have a specific time period in which they must return the money to the depositor? What is that time period?

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western_pa_luann
    Bookmark   February 18, 2009 at 2:31PM
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shay13

Yeah, but what does prompt access mean? A relative told me they could take up to 90 years to pay the full amount back. I said "BS", a dinner is riding on this. Can you show me a place that says definitively the exact time limit allowed to get reimbursed by the FDIC?

    Bookmark   February 18, 2009 at 3:40PM
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joyfulguy

Take this info from a furriner with half a dozen grains of salt, but I`m pretty sure that someone on here or elsewhere said a while ago that it had taken about 3 months ... and included principal, but not interest.

But I have no idea whether that included the full interest amount, i.e., the amount accrued prior to the bust, or just interest in the interim from the time of the bust until they were paid off.

ole joyful

P.S. We have Deposit Insurance in Canada also, but only about five or six large banks that operate nationwide.

If one of them were to go down, I think that the possibility of all the depositers, GIC holders, etc. getting paid off in full is somewhat remote.

That said, they have been much more strictly regulated than in various countries and currently an international evaluating group said recently that they are about the most stable in the industrialized world.

Actually, several of them have had their share prices beaten down rather heavily and some of us think them to be a fair decent buy, currently - and pay about 5.5 - 8.3% dividends.

And dividends were taxed at a much lower rate until three years ago, then a different calculation method on income tax meant that the income tax rate on dividends paid by Canadian corporations was reduced substantially more.

Earlier, if that was the only income that a (so-called taxpayer) earned, there would be no income tax to pay until the dividend income was about $28,000.00 - 30,000.00, but in 2006, with the different method of calculation, the person who received up to $46,345.00 had no income tax liability.

What is better than putting your money into a bank ... (sorry, the keyboard on my new computer was writing question marks, earlier, I think, but now it thinks a question mark is à ... and earlier it would make quotation marks, but now what is supposed to be quotation marks looks like à (and the single one is è).

buying the bank (well, a piece of it) is better than putting your money in there ... and letting them earn more on it than you do.

o j

    Bookmark   February 19, 2009 at 4:31AM
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duluthinbloomz4

Quite a bit of info just by doing a simple search FDIC repayment timetable.

...According to past happenstances, the FDIC has made payment on insured funds within a few days. They make arrangements for a bank in good standing to open a new account for each recipient of insured deposits and send their money on the next business day.

In the event that the FDIC cannot send funds to a healthy institution, they issue checks directly to depositors. They indicate that this payable process can take up to three business days. And with certain type of accounts, such as living trusts or those opened by brokers, the FDIC may need more time to finalize the insurance payment. But suposedly this process shouldn't take more than one to two weeks.

Misconceptions about FDIC Insurance:

There is an idea floating around that the FDIC could take up to 99 years to pay depositors. In their Top 10 Misconceptions list, the FDIC website (www.fdic.gov) states that this is completely untrue.

    Bookmark   February 19, 2009 at 11:56AM
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western_pa_luann

"Can you show me a place that says definitively the exact time limit allowed to get reimbursed by the FDIC?"

uh, no.
I don't have the time to research something I care nothing about.

Sorry!

    Bookmark   February 19, 2009 at 11:58AM
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shay13

Thanks to all with the helpful information.
western pa luann--I tried researching that information, but was not able to find it. Thanks to all the others who were helpful in their responses I did. I thought that was what this forum was for-to help those find information. I am so sorry that you felt the need to be sarcastic, I didn't ask you personally to do research for me. You could have saved yourself time however by just scrolling by my thread, rather than replying in such an assine way.

    Bookmark   February 19, 2009 at 1:49PM
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western_pa_luann

Not meaning to be sarcastic at all... I DID give you a link, but you asked for more, which I am not able to give. AND I apologized for not being able to do so!

"Can you show me a place that says definitively the exact time limit allowed to get reimbursed by the FDIC?"
That sure looks like you were asking for personal research!

There is no need to resort to name calling... especially when you misconstrued my intent.

    Bookmark   February 19, 2009 at 3:32PM
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duluthinbloomz4

Look, sometimes you're d***d if you do and d***d if you don't. Not to throw another "dog in this fight", but a widespread situation I see all around the GW forums is a segment who must not understand how to make use of internet search engines. Not casting any aspersions, so don't flame me, but sometimes it's easier to have someone do it for you (generic you) if you genuinely don't know, if you have no experience with doing independent research, or if you were raised to expect instant gratification without any effort on your own part.

You inquire, say, of Google something to the effect of FDIC Repayment Schedules and, voila!, pages and pages of answers appear. Same for the folks on the Annuals Forum who want to know what a red zinnia looks like - Google red zinnia and click on images and bingo! I'm being a bit facetious, but understanding the power of "key words" to use on search engines virtually brings the world of information to your computer monitor with not much more than a bit of typing and a click of the mouse.

    Bookmark   February 19, 2009 at 4:44PM
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shay13

FYI--I had already pulled up the FDIC website and spent quite a bit of time looking for that specific information before I posted the question here. It never occurred to me to "google" FDIC repayment schedule, I just went straight to the FDIC website to try and find the information. After spending an enormous amount of time trying to find that information, I thought I could post the question here and someone would "know" the answer and give me a response. I did not intend for anyone to do my research for me--I just thought I could get a quick answer from such a knowledgeable group.
And yes, western pa luann, after reading your posts again, I still take your response as sarcastic. I'll tell it like it is, your response was rude! I know you may not care anything about my question, but in fact it affects me greatly. My bank just may be going under, and seeing how I dodged the stock market collapse by pulling out all of my money and putting it into CDs, now I am extremely worried about losing it altogether. If this was something you don't care anything about, why didn't you just scroll on by rather than responding so rudely? It took much more effort on your part to respond than it would have to just scroll on by...

    Bookmark   February 20, 2009 at 10:34AM
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marzhere

Shay13,

I also spent time reading the FDIC website and couldn't find a straight answer...

I think you would have gotten a better and/or more understanding response if you'd have mentioned that you'd already read the FDIC website and couldn't find the answer.

Additionally, I did think your "Can you show me a place that says definitively the exact time limit allowed to get reimbursed by the FDIC?" sounded slightly demanding.

    Bookmark   February 20, 2009 at 11:47AM
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western_pa_luann

"why didn't you just scroll on by rather than responding so rudely?"

Because I was not responding rudely!

I AM sorry you took it that way...
and I am also sure you will not accept THIS apology, just as you did not accept my last one!

    Bookmark   February 20, 2009 at 1:27PM
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dadoes

Just a comment that means nothing in the grand scheme of things ... I also thought Western_PA_Luann's response was snippy and unnecessary, and I did not feel Shay13's question was demanding. This is an open forum, and I took the question as being directed to anyone who could help.

The uh interjective and additional comment "I don't have the time to research something I care nothing about." is what makes for the snippiness.

Better to say simply "I'm sorry, I don't know the answer." Or even better than that, don't respond at all, leave it for someone else.

    Bookmark   February 20, 2009 at 5:44PM
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shay13

Thank you dadoes, I was beginning to think I was being overly sensitive! Thanks for all the responses, I found the information for which I was seeking. I had conducted a search on the FDIC website as well as a search of this forum before posting my question. I'm sorry I did not make this clear beforehand. And, I'm sorry if my follow up to my original question was considered demanding. That was not my intentions at all. It sure makes one think twice before asking for help.

    Bookmark   February 20, 2009 at 7:59PM
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