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AIG Bank revealed that it’ll terminate operations to service retail deposit accounts. Existing AIG Bank clients have a number of weeks to relocate their deposits prior to all accounts are closed in the fall. “AIG Federal Cost savings Bank is currently undergoing an orderly transition from a standard cost savings bank to a count on just thrift,” said Jon Diat, an AIG representative. Since March 31, 2013, AIG Bank held roughly $778 million in deposits, according to the FDIC database.
In a notice sent out to consumers, AIG Bank said that all non-IRA accounts – including certifications of deposit (CDs), money market and cost savings accounts – will be closed automatically as of Sept. 30, 2013.
CDs that reach maturation after the account closure date will earn any built up interest, plus any interest that’d have been earned if the account hadn’t been closed early. Clients likewise have the choice to close their CDs, without any very early withdrawal charge, but just the accrued interest will be credited to the account. Any CD that develops between Aug. 26, 2013 and the account closure date won’t renew nor remain to make interest after maturation.
For other deposit accounts, AIG Bank will stop all transactions beginning Sept. 13, 2013 in preparation for account closures. Deposits and withdrawals after this date may not be processed. Consumers are asked to make plans to re-route transactions to their non-AIG Bank accounts.
All Individual Retirement Account CDs and cash market accounts are being closed as of July 31, 2013 under the conditions as non-IRA accounts. Unless customers deal with a successor custodian to get these tax-deferred funds, AIG Bank will send Individual Retirement Account rollover checks that should be transferred to an additional IRA within 60 days to avoid tax consequences.
Earlier this month, federal regulatory authorities accepted enforce harder government scrutiny and financing requirements on AIG since the business was considered a crucial piece of the UNITED STATE monetary system.
There was no mention of regulative pressures that may have pushed AIG to stop servicing of retail deposit accounts.