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article imageNetBank Joins The Deadpool, FDIC protection for customer

By Chris V. Thangham     Sep 30, 2007 in Internet
NetBank online banking startups were closed Friday after intervention from the US Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC). For customers with $100,000 in their bank account are protected by FDIC.
NetBank was a successful online bank for some time until recently it failed after mismanaging the mortgage crisis. The US Office of Thrift Supervision found serious errors in their banking procedures as a result they shut down the operation. Since NetBank is insured by FDIC, all customers are protected and they won’t lose their money even when the main bank files bankruptcy.
NetBank initially floated in the Wall Street at a price of $12 per share in 1997 and hit as high as $249 per share in 1999 but finally they settled at a price level of $15 per share. The company was delisted from the NASDAQ on August 3 this year and traded at a low value of $0.068.
NetBank didn’t have any physical banks just online, but did a great job and had a good customer service. I have bank accounts with them for quiet some time, I didn’t have to pay either exorbitant service fees or charges, free bill payment and I received good interest rates for savings account compared to local banks like Bank of America, Wachovia.
Because of mortgage crisis, some say many banks will be closing soon. NetBank account holders however have not much to worry, all their savings will be protected by FDIC and if you have concerns you can close the NetBank accounts. NetBank is bought by ING bank which is one of the top banks in the world, so it will become seamless with their taking over.
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