FDIC — Failed Bank Deposits

Statutory term: Unclaimed Insured Deposits

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Dormancy Periods

The dormancy period is how long property must be inactive before it is considered unclaimed and reported to the state.

Property Type Years Notes
Insured deposits (all types) 18 months 18 months from FDIC initiation of insured deposit payments. After this period, rights against the FDIC insurance fund are permanently barred. FDIC sends first notice within 30 days of failure, second notice at 15 months.
Transferred deposits (P&A transaction) 18 months If deposits were assumed by an acquiring bank, the acquirer must refund unclaimed deposits to the FDIC receiver after 18 months. Depositor rights against the acquirer are then barred.
State escheatment 18 months After 18 months, FDIC delivers unclaimed deposits to the state of the depositor last known address as unclaimed property. All depositor rights against the FDIC are barred upon delivery.
State-held deposits (reversion to FDIC) 10 years If deposits delivered to a state remain unclaimed for 10 years from the date of state delivery, the funds revert to the FDIC and become FDIC property. 12 U.S.C. § 1822(e)(5).

The FDIC timeline is unique among federal programs: 18-month hard deadline for insurance claims, then mandatory delivery to states (unlike NCUA which retains funds indefinitely). States then hold funds under their own unclaimed property laws, but if still unclaimed after 10 years the funds revert to the FDIC as its own property. Interest stops accruing on the date of bank failure. Applies only to institutions closed after June 28, 1993 (the effective date of the 1993 amendments). For pre-1993 closures, the original statute applied.

Finder / Helper Restrictions

Restriction Level: None

Fee Cap: No federal cap — No FDIC-specific restrictions on third-party finders or claim assistants. Federal program not directly subject to state finder-fee caps. Once deposits escheat to states after 18 months, state unclaimed property finder laws apply to those funds. FTC general consumer protection rules apply.

Solicitation Rules: No FDIC-specific solicitation rules during the 18-month claim window. After escheatment to states, state solicitation rules govern. Standard FTC consumer protection applies.

Claims Information

Minimum Claim
No