Q: I know that all deposits are automatically insured by the federal government up to $100,000, so there is no danger of loosing any money up to that amount if the bank we to collapse. But what about if the bank is sold (to another bank)? I would assume that any deposits made into the old bank would be considered assets (likewise anything the bank owned to its account holders would be considered debts) and thus it all would be computed into the sale price of the bank when it is sold. So when the new bank takes over, would it continue to honor the previous accounts under the old policies (for example, interest rates on things like Certificates of Deposit and / or loans)?
A: The first thing that will happen is you'll have to order new checks which will irritate you alot because you probably have a bunch of the old ones. That not withstanding, the new bank will honor the rates you are receiving on a CD until it matures, but most other rates are variable anyhow and aren't that much different from bank to bank. The new bank wants to keep your business because quite simply, they have prepaid for it so they will pay for the first batch of checks and plastic. The bank employees are the ones who will experience the most risk.