Have you ever wondered what would happen to your money if the bank stayed in bankruptcy? Although it is an unlikely scenario, it is not impossible. However, it is not all bad news, since in Mexico there is an insurance system for all deposits made to different accounts.
If as a cardholder one day you have wondered what happens to your savings if at some point the banking institution where your money is kept goes bankrupt? You should be aware that you are protected by the Institute for the Protection of Bank Savings (IPAB) that covers any unfortunate event.
What happens to my savings if a bank fails?
If the bank where your money is goes bankrupt, don’t worry, because the IPAB has insurance of up to 400,000 Investment Units (UDIs) for each user of the bank, which currently covers 2,700,000 pesos.
If you have more than that amount, the system of protection of the IPAB it will not be covered, and you will have to look for an option to protect your money.
Since May 21, 1999, the Institute for the Protection of Bank Savings, or IPAB, is the body in charge of managing bank deposit insurance in Mexico, for the benefit and protection of savers.
So it is a system designed to support and take care of the savings of Mexicans, so if this were to happen and you have less than 2 million 700 thousand pesos, you should not run to the bank and withdraw your money, because it is insured by the bank through the IBAP insurance system.
On the other hand, if you have an amount saved in the bank as an investment, these remain separate and do not enter the liquidation of the banking institution, so you do not have to worry either, it is only when your money is in a traditional savings account and if it is above the amount covered by the IBAP.
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