I got some questions about FDIC? (Having a SavingsLink account with CountryWide)?

Question

With all the bad news about CountryWide, I got some questions about FDIC.

I have a SavingsLink account with CountryWide (less than $100K) . I think SavingsLink account is FDIC insured.

But, someone (from another big bank) told me that it could take many months to get my money back from FDIC.

Or some cases, you might not get compensated at all if the bank (that goes bankrupt) is a giant one like CountryWide.

Are these true? Could someone explane to me what would happen to me if CountryWide goes bankrupt?

Should I move my money out of CountryWide right the way?

Answer 1

Tell that "big bank" nutso he's fulla beans... because he is...

Others have correctly pointed out the S&L debacle of the 80's... If you are under the $100K threshold you have absolutely NOTHING to worry about.

Besides... Bank of America just infused them with $2 BILLION in cash at the last of this week....

If you feel uncomfortable with the bank, simply move your funds to another bank...

Answer 2

The FDIC insures deposits up to $100k (and $250k for retirement accounts). The deposits are per ENTITY not ACCOUNT. That's a very important distinction. So for your Social Security number, you are insured up to $100k.

The person from the other bank is correct in that if Countrywide (or any other bank for that matter) goes bankrupt, it will take some period of time to get your money back from the FDIC.

However, the other bank is trying to scare you into moving your money somewhere else like his bank. The chance of Countrywide going bankrupt is minimal. As a percentage of home loans, the number of defaults is still fairly low. It would take a much larger percentage to bankrupt a multi-billion dollar bank like Countrywide.

In the end, if you feel uncomfortable with your money being deposited at Countrywide, move it somewhere else. It's your money, and it's your choice where you deposit it. I have found that community banks are a better place to do business anyway. They may not always have the full array of services, but their customer service is almost always better than the big banks' service.

Answer 3

if CountryWide, the banking arm of it rather than the mortgage company arm, were to get into that kind of financial trouble, the most likely thing is that you'd wake up one morning and some other bank would have taken over during the middle of the night. [Arranged by FDIC.]

your account would have been transferred already and it would be just as available as ever.

***
even after the nationwide collapse of multitudes of S&Ls in the thrift crisis of the late 1980's, the number that closed and were not open under new management the next day was very small.

The fellow from 'another big bank' either isn't old enough to remember [wasn't adult in 1989 or wasn't in the business] and is simply repeating people's fears because it is to his advantage to steal customers, or he's kicking an injured dog while it is down.

take a deep breath.

Answer 4

Ok listen, calm down. If Countrywide goes belly up..your mortgage is sold to another company and that said company has to honor your contract. They have to honor your contract to the letter, its the law. But if you want to get out of countrywide, that is your decision. I am unsure of when you can get your money back from FDIC, but if Countrywide does go bankrupt, your contract and loan are safe. You won't lose anything.

Answer 5

that's like asking if i live in new york city or any other large american city that some one may drop a bomb on -- should i move -- if country wide bellys up it will be felt trhough out the banking industry so just where was you planning to move the cd to -- a shoebox under your bed!!! relax don't worry be happy!!!