FDIC Failed Bank List - Find and claim your insured bank account, retirement account (IRA), CD or Safe Deposit Box at banking institutions closed by government regulators

FDIC - The Federal Deposit Insurance Corporation - was created by the Banking Act of 1933 to administer insurance funds responsible for protecting depositors from losses when banks fail.

Participating banks and thrifts pay premiums to an FDIC Deposit Insurance Fund (DIF). When a bank fails, the FDIC may pay depositors and brokers directly, or it may transfer funds to a successor bank.

The Deposit Insurance Fund contained $45 billion at the start of the credit crisis in 2008, but that has been rapidly depleted. The FDIC recently increased bank premiums to make up for the shortfall, and can draw on a line of credit from the US Treasury, if necessary, as it did in 1991 to protect depositors in the aftermath of the S&L crisis.

There has been at least one failure every year since operations began, with more than 1,400 banks and 700 savings institutions closing between 1982 and 1992 alone.

There were 25 bank failures in 2008 including the largest ever, Washington Mutual, with $182 billion in deposits. Prior to WaMu, the largest failure was Continental Illinois, with $30 billion in deposits.

In 2009, there have already been seventy-two bank failures including BankUnited FSB, which will cost the Deposit Insurance Fund $4.9 billion. Recent legislation increased by $500 billion the amount available to the FDIC's Deposit Insurance Fund (DIF) for expected future closings.

When a bank or savings and loan is ordered closed by government regulators, the FDIC is appointed Receiver - analogous to a trustee in bankruptcy - with responsibility for the payout of insured deposits and the liquidation of the institution's assets, which are then distributed to creditors. The FDIC is responsible for paying:

Unclaimed insured deposits up to $250,000 per qualified account; *
Dividends declared on excess deposits over the $250,000 insured amount; *
Dividends declared on general creditor claims; and
Any remaining funds distributed to shareholders of the failed institution

The FDIC provides written notice within 30 days to insured depositors advising they must claim their deposit from the FDIC, or if the deposit has been transferred to another institution, from that institution. A second notice is mailed after 15 months to those who have not responded.

► Be advised, however, that not every depositor with funds in a failed bank will receive notification from the FDIC.

Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.

This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.

There are negative consequences for those who fail to promptly claim insured funds

Accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership.

In a worst case scenario, by statute accounts which go unclaimed for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.

It is important to understand you may have an account at a failed institution and not know it. This occurs when you were a depositor at a bank acquired by an institution that subsequently failed.

◄ For specific claims information and a list of institutions a failed bank may have acquired over the years, select a closed bank from the list.

* The Emergency Economic Stabilization Act of 2008 temporarily increased deposit insurance from $100,000 to $250,000 from October 3, 2008, through December 31, 2009; but it has now been extended to December 31, 2013.

Consumer Alert

Unclaimed FDIC Insured Deposits

Note: There are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes ...

If an insured depositor fails to make a claim an insured or transferred deposit within 18 months after the FDIC initiates the payment of insured deposits, the transferee institution must refund the deposit to the FDIC, and all rights of the depositor against the transferee institution are barred.

The FDIC then remits the insured deposit to the custody of the unclaimed property administrator in the account owner's home state, unless that state declines to accept custody. If a state declines to accept, the right to claim ends with termination of the receivership. If a state accepts, the FDIC is deemed to have made payment to the depositor, and all rights of the depositor against the FDIC are barred.
Most states allow claims in perpetuity, but there's a reversion clause. If a depositor does not claim the deposit delivered to the custody of the State within 10 years of the date of delivery, the deposit must then immediately be refunded to FDIC, and all rights of the depositor against the state are barred.

It's important to note that If a state declines to accept custody of the deposit - which they sometimes do - the depositor must claim the funds from the FDIC before the receivership is terminated, or all rights of the depositor with respect to the deposit are barred. Dividends for credits arising from uninsured portions of a deposit may, however, be claimed after the receivership is terminated if a dividend check was returned by the post office for a bad address.

Be aware that due to the number of mergers and acquisitions in the banking industry over the years, it is possible you or a deceased family member might well have an account at a failed bank and not know it.
Additionally, unclaimed safe deposit boxes at closed branches may be drilled and the contents sold at auction just weeks after closing, so prompt action is advised.
For assistance tracing and reclaiming a bank account or safe deposit box at a closed bank go to: Unclaimed Account Search