Sep
I just found out through a post on Consumerist that my bank of about 6 years, Netbank, went out of business with no warning on Friday.
I never would have thought that my bank would just close up shop, but I guess anything could happen. Thank goodness for the FDIC, which ensures that my deposits of up to $100,000 are insured and immediately accessible. No need to worry, my friends, my bank balance was (far) less than the $100,000 insurance cap, so this ordeal will only be a minor inconvenience for me. The FDIC has already published a comprehensive information page and 24-hour hotline about NetBank’s failure, and the changeover of its accounts to ING Direct. This is one of the few times where I am actually praising a U.S. Government agency for doing their job (and saving my ass). Wouldn’t it be great if the rest of the country operated in such an efficient and responsible manner with the best interests of citizens as their first priority?
I switched to NetBank about 6 years ago because they offered interest bearing checking accounts with no fees (not even ATM fees), were one of the first banks to have online bill-pay, and (my favorite feature) accepted deposits by mail. I’ve heard good things about ING Direct’s interest rates … so I guess this really isn’t a bad thing.
I feel really bad for the 1,500 account holders that had collectively $109 million in deposits that are over the FDIC limit. These poor rich folk stand to lose as much as 50% of their assets just because they chose the wrong bank.
Let this be a lesson learned … when you get rich, keep your excess money stuffed in your mattress or buried under your patio … yeah, that’s much safer.
I’m am (or now, was) a NetBank as well, and didn’t know that they closed til I saw your post this Monday morning. Thanks!
I’ve known that NetBank has been in trouble for a while now (which I think is making this a little easier), but it’s amazing to me that a bank can implode as quickly as this.