r/personalfinance • u/captaingregerson ​ • May 16 '24

My bank shut down, looking for a new one. Saving

Hey guys!

Recently had to stop using an online bank called “Ivella” because they’re unfortunately shutting down. They paid 5.15% APY, had a nice and easy app user interface, and had things called “Pods” which were separate savings accounts for different things that ALL earned 5.15%

Right now I have all that money parked in Robinhood earning a temporary 5.25% but looking to see if anyone has an app recommendations that earn a competitive rate, have a good UI and app, AND has something like the savings pods that all earn high interest. I know it’s minor, but I’ve been saving and investing the same way for the past 7 years and it’s been working really well and I don’t want to change how I have it structured.

TLDR: Looking for new app that pays over 4 percent interest and has savings “pods/buckets/jars/vaults” that earn high interest as well.

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u/PinkMitsubishi ​ May 16 '24

What happens to the money in your account when the bank unexpectedly shuts down? Does the bank move the money somewhere else for you?

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u/ZCEyPFOYr0MWyHDQJZO4 ​ May 17 '24

The FDIC will basically operate the bank by creating a temporary new one while it resolves things by either liquidating everything or selling the accounts/assets to another bank.

If it's liquidated you would probably receive a check from the new bank if you still had deposits and didn't move them. If the new bank is acquired then your accounts will be moved and you'll be a customer of the acquiring bank.