What about my account with New South Federal Savings Bank?
If you had an account with New South Federal Savings Bank, you now have an
account with Beal Bank, Plano, TX. All deposit accounts, which include checking,
savings, money market, CDs and retirement accounts, have been transferred to
Beal Bank, regardless of the dollar amount. No one lost any money on deposit
in New South Federal Savings Bank.
Customers of both banks should continue to use their existing branches until
Beal Bank can fully integrate the deposit records of New South Federal Savings
To forewarn you of any scams, please be advised that you will not receive any
e-mail notification from the FDIC, the Receiver, or Beal Bank to claim/unlock/unsuspend
your account or to provide any private information. Please be watchful for
and resist any such scams to obtain information from you by individuals or
entities purporting to act on behalf of New South Federal Savings Bank or the
ATM/debit card and/or Billpay:
What about my ATM/debit card and/or bill paying with New South Federal
Your ATM/debit card will continue to work, and bill paying will work as
it has in the past.
I am a deposit broker or have brokered deposits. What do I do?
As an All-Deposit Transfer transaction, the total of
all deposit accounts, including the Cede & Co. brokered deposits, have
been assumed by Beal Bank.
Be advised, however, that from and after the date of closing,
Beal Bank will accrue and pay interest on deposit liabilities at a rate
it shall determine; accordingly, Beal Bank shall permit depositors, including
brokered depositors, impacted by reduced rates to withdraw their deposits
without penalty for early withdrawal.
If you are a customer who has a New South Federal Savings Bank
deposit through a broker, you must contact your broker with any questions.
Direct Deposits - Government Deposits:
What will happen to my direct deposits?
Direct Deposits, including Social Security checks, will continue as normal.
Existing Deposits at Beal Bank:
I already have other deposit accounts with the new bank. When combined with balances at this bank,
my deposits exceed $250,000. Are all funds insured?
The accounts transferred to Beal Bank will be separately insured for at
least six months after the merger. This grace period gives a depositor
the opportunity to restructure the accounts, if necessary.
CDs from the failed bank are separately insured until the earliest maturity date after the end of the
six-month grace period.
CDs that mature during the six-month period and are renewed for the same term and in the same dollar
amount (either with or without accrued interest) continue to be separately insured until the first maturity
date after the six-month period.
If a CD matures during the six-month grace period and is renewed on any other basis, it would be
separately insured only until the end of the six-month grace period.
Interest Rates, Early Withdrawal Penalty:
Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
Interest on all deposits accrued through Friday, December 18, 2009, will
be paid at your same rate. Beal Bank will review rates and notify you if
interest rates will change. Your interest rate may be reduced.
You may withdraw funds from any transferred account without an early withdrawal
penalty until you enter into a new deposit agreement with your new bank. Entering
into a new deposit agreement can be done by either renewing your CD or making
a deposit to or a withdrawal from your account.
What about my loan or mortgage with New South Federal Savings Bank?
All mortgages and loans have been assumed by Beal Bank. Your payment amount
and due date are the same. If you are having your payment deducted from
your account, it will continue as it has in the past. You should continue
to make your checks payable to New South Federal Savings Bank and send
your payments to the same address.
Loans in Process:
What happens if I had a loan in process that had not closed or a
line of credit not fully funded?
You should contact your loan officer. All prior contacts remain the same.
Media: I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
What about checks that I have written on my account with New South
Federal Savings Bank?
Your checks will clear up to the available balance in your account. You
can continue to use your existing checks.
Safe Deposit Boxes:
How can I claim the contents of my safe deposit box?
It is business as usual. You can go to the branch office and access your
safe deposit box; however, no action on your part is required because of
What about my shares of stock?
All shares of New South Federal Savings Bank were owned by its holding
company, New South Bancshares, Inc., Birmingham, AL. The holding company
was not included in the closing of the bank or the resulting receivership.
If you are a shareholder of New South Bancshares, Inc., please do not contact
or file a claim with the Receiver. You may contact New South Bancshares,
Inc., directly for information as follows:
|William T. Ratliff, III, Chairman
New South Bancshares, Inc.
Why do all deposits, insured or not, pass in some transactions but not in others?
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result had been for the FDIC to transfer only the insured deposits in a Purchase and Assumption transaction; however, the temporary increase in the deposit insurance limit has assisted in the transfer of all deposits more often in the past year.
I did some work for the bank and have not been paid. What should I do?
All claims against New South Federal Savings Bank, together with proof
of the claims, must be submitted in writing to the Receiver at the following
|Federal Deposit Insurance Corporation
Receiver: New South Federal Savings Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent