3. Sorry,
that is incorrect.
The correct answer is "False." In the event of a bank merger,
the FDIC's rules provide a "grace period" so that any change in insurance
coverage is not immediate. Regular checking and savings accounts from
each institution are separately insured, as if they were still at separate institutions,
for six months after the merger. In general, CDs at the acquired institution remain
separately insured until the earliest maturity date after the six-month grace period.
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