Depositors of wall creek bank worried about their account

Daisy Lem, an old customer is angry. She had her bank and checking accounts with the bank and only had $10 left in her wallet. Like all the other bank customers, she is wondering when she can claim her insurance check, and whether she will be able to get all her earnings. Carol Terry, whose artworks were displayed inside the bank, had to put them in their truck. Many analysts say that if the lady with the paintings is affected, then the problem must be huge.

Many customers are still uninformed of the reason behind this but FDIC maintains that the bank did not have enough cash on hand to cover customer deposits. Usually before the federal agency shuts down a bank, they find another financial institution to purchase it. In this case, however, there were no buyers for Home Savings Bank because other banks were also devastated by the mortgage banking crisis.

Shaken account holders have started to show up at the door of the now-closed Home Savings Bank only to be met by an FDIC representative. Some are asking for their insurance checks, and FDIC says that it will mail these out on Monday. According to the federal agency, it is the checking account holders who will most likely be affected.  Social security payments and direct deposits made using checks will likely experience problems. FDIC also issued a memo to client who issued paper checks to inform them of the possibility of their checks banking.

In a statement released by FDIC, all accounts bearing $250,000 deposits will be paid in full. Different types of accounts may be insured by other organizations. For example, IRA funds are insured separately from banking and checking account. Insurance limit is $250,000.

Customers may check if their accounts are fully insured by checking the FDIC website. For individuals who feel that they have uninsured deposits, they may call the FDIC Call Center at toll free number 1-800-523-8089.

Branches of Home Savings of America in Southern California and Minnesota were also shutdown due to problems in liquidity. Clients with uninsured accounts will receive a security in their name. Only accounts that pay interest are insured by FDIC.