Update for people with Silicon Valley Bank accounts @SVB_Finance #SVBCollapse
So, the FDIC says that insured accountholders will have access to up to $250K of funds on Monday morning - can write checks, do a wire transfer, use a debit card, etc. 1/x
You can close your @SVB
deposit account by writing a check for your available balance and depositing that check at another institution, wiring the money, etc. Make sure to leave enough funds in your account to cover any outstanding checks or charges.
It is not clear whether @FDIC
will give an "advanced divident payment" to give access to some portion of your funds which were in @SVB
prior to the collapse.
You must plan now to move your account from @SVB
to another bank. The temporary bank set up by @FDIC
will close at some point. Consider spreading money across multiple banks to stay under the insured limit (generally <=$250K).
It is relatively easy to open a business checking account online at other banks, like @Bank of America @Chase @Citi @Wells Fargo @First Republic
. Of these, FRB may be the most vulnerable to a bank run. Make sure to transfer any automatic payments to the new acct asap.
If you had more than $250K on deposit at @SVB
, call +1-866-799-0959 to set up an appointment with an FDIC Claims Agent to start the process of making a claim for your funds. Also check resolutions.fdic.gov/claimsportal/s/
to start your claim process.
For the claims process, you will need a login.gov
account, so you can get a jumpstart on the process by creating a login.gov
account if you don't already have one. To complete this portion of the process, you'll need a few documents.
You'll need a state-issued ID (Drivers License), your Social Security number, and a valid phone number.
Since you'll have to move automatic payments or reverse wires, check your previous statements for such charges, and move them asap to your new accounts. Also, if you have an @SVB
credit card, do the same for recurring charges there.
Don't forget Bill Pay - any bills paid through that facility will also need to be migrated before @FDIC
shuts down "Deposit Insurance National Bank of Santa Clara (DINB)."
CDs will not earn interest after March 10, 2023. The FDIC waived the early withdrawal penalty for CDs.
If you have a loan from @SVB
, you must continue to make payments as required by the terms of your loan.
Overdrafts will not be allowed - any overdrafts will result in the check being returned unpaid.
Lines of credit (incl. home equity lines) are frozen as of March 10, 2023 and cannot be drawn against.
If you have a safe deposit box at @SVB
(now DINB), you must empty it before the FDIC closes DINB, which could realistically be at any time.
Shareholders: Only bad news here. Shareholders must deal with @SVB
Group (3003 Tasman Dr, Santa Clara, CA 95054) for their claims, and shareholders have the lowest priority for claims.
Oops, that should have been 14/x
Tax reporting forms will be done by the FDIC (1098s and 1099s).
If you have a deposit account with an amount over the insured limit, and also a loan with @SVB
, you may be able to use the uninsured amount pay down/off your loan with SVB.
Scammers will certainly be out in force, offering help recovering funds, providing alternative financing, etc. Do not provide passwords, account #'s, or any personal information to anyone who calls you. Call @FDIC
or the bank back at a known number.
You can call @FDIC
's call center at +1-866-799-0959 for any questions, although I was on hold more than 2 hours on Friday without anyone picking up ...
If you have any other tips, please share them as replies to this thread.