What happens when banks merge?

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  • When a bank merges with another institution, it can affect your banking.
  • You may get new bank accounts, but they should be similar to your previous accounts.
  • Branches and ATMs may close temporarily, but you may have more options once a merger is complete.
  • Read more stories from Personal Finance Insider.

Bank mergers are common, even between large banks. Notable banking mergers over the past year include the merger of PNC Bank with BBVA; Merger of Truist Bank with BB&T and SunTrust; and the merger of First Horizon Bank with IberiaBank.

But what does a bank merger mean for consumers? We explain what a bank merger is and how it can affect your banking.

What is a bank merger?

A bank merger occurs when at least two financial institutions combine under a single charter.

In a bank merger, one institute usually takes over by name. However, on rare occasions, banks may form a newly incorporated bank with a different name.

As two banks grow together, a bank merger consolidates products and services. When two brick-and-mortar financial institutions merge, some branches and ATMs may be temporarily closed. online and


mobile banking

may also be temporarily unavailable.

What happens in a bank takeover?

If your bank is acquired by another institution, you may see some notable changes in your banking.

A bank should notify you when you receive new products and services and help you make the new transition easier.

Annie Lautenbach, a spokeswoman for Truist Bank, says Truist kept the same checking, savings, and money market account numbers; routing numbers; direct deposits; and automatic remittances for SunTrust and BB&T customers. Lautenbach also says that new accounts were identified based on the customer’s current products or services.

Therefore, banking fees such as monthly service fees, overdraft fees, or off-network ATM fees should not change significantly. The interest rates on accounts should also be similar to those of your previous savings accounts.

Keep in mind that online and mobile banking may also be temporarily unavailable during a bank merger. Some customers may need to set up new online accounts, which is only possible if you have a new account.

What happens when a bank merger is complete?

Once a bank merger is complete, you now have access to your new bank’s products and services.

If you are banking with a brick-and-mortar financial institution, you should check your bank’s current locations and ATMs as there may be other options nearby.

At this point, you can also set up your new account the same way you managed your previous one. You can set up online bill payment, schedule direct deposits, or get new checks.

If you had a fixed-term deposit account — like a deposit slip — or card that wasn’t changed during the bank merger, new products and services will be offered after the bank merger is complete, and you can still use previous banking products until then to mature or expire.

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