Schiff Urges Constituents With Accounts At Indymac Bank To Contact Him If They Need Help With FDIC

Official Seal of the US House of Representatives

Thursday, July 17, 2008 Contact: Sean Oblack (202) 225-4176

Schiff Urges Constituents With Accounts At Indymac Bank To Contact Him If They Need Help With FDIC

WASHINGTON, DC - Congressman Adam Schiff is encouraging constituents affected by the failure of IndyMac Bank, based in Pasadena, which was seized on July 11, 2008 by the Federal Deposit Insurance Corporation (FDIC) to contact him if they need help with the FDIC.  FDIC IndyMac has a toll-free assistance hotline at 1-866-806-5919 which is open daily from 8:00 a.m. to 8:00 p.m. or online, but Congressman Schiff wants to make sure that constituents are able to get the information they need.

People with concerns and questions about the IndyMac takeover or who have been unable to receive answers to an inquiry with the FDIC can contact Rep. Schiff’s Pasadena Office at 626-304-2727. 

“These tough economic times are taking a toll on everyone, and customers of Indybank are understandably concerned about their hard-earned savings,” said Schiff.  “The federal government through the FDIC has guaranteed much of the money held by IndyMac, and it has set up a special hotline for IndyMac bank customers. But I want to encourage people affected by the bank failure to call me if they have any problems getting through to the FDIC or related questions. We can help you get answers.”

Customers of IndyMac have been withdrawing deposits at a high rate causing panic at many branches.  In the week before the takeover customers withdrew $1.3 billion in assets, which many believe was a catalyst for the bank’s closure.  Customers at IndyMac Bank and many other banks should understand that much -- but not necessarily all -- of their money is insured by the federal government.

The FDIC will cover all IndyMac deposits and those at other FDIC insured banks, including checking, NOW and savings accounts, money market deposit accounts, and certificates of deposit (CDs), dollar for dollar, including any accrued interest, up to the $100,000 for individual accounts. 

However, certain types of accounts have an insured limit greater than $100,000.  The following is a list of insurance limits for different accounts.  Individuals can calculate their insurance coverage using the FDIC's online Electronic Deposit Insurance Estimator at: www2.fdic.gov/edie

  • Joint Accounts, deposit accounts owned by two or more people, are insured up to $100,000 per person on the account.  A Joint Account between a husband and wife would be insured up to $200,000 for example.
  • Individual Retirement Accounts (IRA’s) are insured up to $250,000 per depositor per insured bank.
  • Revocable Trusts, such as living trusts and payable-on-death trusts are often insured for more than $100,000 per account, for further details about the amount insured, which can vary, contact the FDIC

Since the start of the FDIC in 1933, no depositor has ever lost a penny of insured deposits.  To check whether your bank or savings association is insured by FDIC, call toll-free 1-877-275-3342, use "Bank Find" at www.fdic.gov/deposit/index.html, or look for the official FDIC sign where deposits are received.