Netbank shuts down

Desilva · Post by **Desilva** » Sat Sep 29, 2007 1:37 pm

What happens to the non FDIC insured balance if a person had more than 100k in CDs at net bank?

pjigar · Post by **pjigar** » Sat Sep 29, 2007 7:39 pm

Desilva;48093What happens to the non FDIC insured balance if a person had more than 100k in CDs at net bank?

You will get back $100K total (FD+checking+savings+etc.) from FDIC and the rest will be lost. You can file claim with FDIC but no guaranty.

http://www.fdic.gov/bank/individual/failed/netbank.html

sftrade · Post by **sftrade** » Sat Sep 29, 2007 8:12 pm

This is a good warning for those who are chasing higher yields then normal. The term run on the bank is soon going to be part of the national lingo.

harishk · Post by **harishk** » Sat Sep 29, 2007 10:40 pm

Desilva;48093What happens to the non FDIC insured balance if a person had more than 100k in CDs at net bank?[/quote]

http://netbankcustomer.blogspot.com/

R2Mum56 · Post by **R2Mum56** » Mon Oct 01, 2007 10:56 pm

I was one of the customers. Fortunately, I did not have a lot of money in it. So I am hoping to close the account and be done with it.

I have another problem, where some members may be able to help. This account was my gateway to transfer money to India using ICICI Money2India. Now, I do not have any choice. I have an online HSBC Savings account. But I am not sure if I can use this account with M2I. If any of the friends is successfully using HSBC account via M2I, please advise.

Thanks.

RRK · Post by **RRK** » Fri Oct 05, 2007 11:49 pm

In 2005 I opened a CD and closed it in 2006.
Great yield + ipod shuffle was the attraction. After the CD closure in 2006, I did not deposit anything in Netbank. I only use Prime MM fund of vanguard.

Otherwise, sittting in India, it is difficult to tackle these problems.

R2iers, please make sure you choose good bankers before your return..

layman · Post by **layman** » Sat Oct 06, 2007 3:23 am

I got the ipod too. I forgot to close the account in 2007, so the CD will be maturing in Nov 2007. I will close it by then. BTW, I got an email from ING saying that it has acquired netbank and there is no change in account access. If ING is acquiring netbank, the account holders are safe I guess.

vanuma · Post by **vanuma** » Tue Oct 23, 2007 2:04 am

I closed the account couple of weeks back. Had no problems. They mailed a certified check out to me.

Vanuma

Desi_by_Nature · Post by **Desi_by_Nature** » Tue Oct 23, 2007 2:12 am

Wow ..it seems like they gave away too many iPods, made Apple rich and themselves bankrupt.

hmm ..... now i wonder if Netbank was actually an undercover operation by Apple to gain share in the MP3 player market.