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5-Step Plan of Action for Depositors Fired from Their Banks
As major financial institutions like AIG and MetLife Bank shutdown their deposit services, GoBankingRates.com provides a 5-step guide for affected customers to protect their money in the transition.
LOS ANGELES, CA (August 1, 2013) — As Dodd-Frank Wall Street Reform policies place continued pressure on financial institutions accepting deposits, AIG Federal Savings Bank is one of several banks announcing closure of all deposit accounts. To help affected depositors, GoBankingRates.com identifies five necessary steps for ensuring funds are quickly and easily returned.
“As much as both banks and their customers want the transition to happen smoothly, history says that it probably won’t,” comments Casey Bond, GoBankingRates’ managing editor. “When a bank closes its accounts, it’s the depositors who take a proactive role who will avoid headaches of lost funds, bounced payments, and hours spent dealing with customer service,” she continues.
1. Verify all pertinent details.
Depositors should contact their banks to verify the date on which deposit funds will be released and where they will be rerouted. For example, AIG funds are to be mailed to account holders, whereas MetLife Bank deposits will be assumed by GE Capital Retail Bank.
2. Perform detailed comparison of replacement accounts.
To ensure a smooth transition, depositors should open a new account as soon as possible. A number of institutions and factors, including interest rates, account terms, and fees should be examined.
3. Audit automated payments.
Once a new account is opened, a thorough audit of all automatic payments and transfers from the old account should be performed and re-created in the new account to prevent late fees and lost funds.
4. Contact payroll to have direct deposits rerouted.
Employees who receive direct deposit should notify payroll of the pending account closure three weeks ahead of time to avoid delayed receipt of paychecks.
5. Properly file all necessary paperwork.
For tax reasons, documents like account statements and 1099s associated with the closed account must be kept on file.
For more information on this guide, please visit http://gobr.co/7sB.
About GoBankingRates.com
GoBankingRates.com is a personal finance website that connects consumers with the best interest rates nationwide. They collect rates on savings, CDs, and checking accounts, as well as auto and mortgage loans from over 5,000 financial institutions. GoBankingRates.com’s editors have been featured on several top media outlets such as US News, Yahoo! Finance, Forbes, The Street, LA Times, Huffington Post and more.