What happens when banks merge?

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

Bank mergers happen frequently, and even between big banks. Over the past year, some notable bank mergers include PNC Bank’s merger with BBVA; the 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 will clarify what a bank merger is and how it can affect your banking operations.

What is a bank merger?

A bank merger occurs when two or more financial institutions come together under the same charter.

Usually, one institution will take over the name during a bank merger. But in rare cases, banks can create a new chartered bank with a different name.

Since two banks are coming together, the products and services will be consolidated in a bank merger. If two physical financial institutions merge, some branches and ATMs may be temporarily closed for a while. online and


mobile banking

may also be temporarily unavailable.

What happens during a bank acquisition?

If your bank is acquired by another institution, you may experience noticeable changes in your banking operations.

A bank should let you know if you get new products and services and help you adjust to the new transition.

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

Therefore, there should be no significant changes in bank charges such as monthly service charges, overdraft fees, or out-of-network ATM fees. Interest rates on the accounts should also be similar to those on your old savings accounts.

Keep in mind that online and mobile banking services may also be temporarily unavailable during a bank merger. Some customers may need to create new online accounts, which can only happen once you have a new account.

What happens after the bank merger is complete

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

If you’re dealing with a physical financial institution, you’ll want to review your bank’s current locations and ATMs, as there may be more 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 term account — like a certificate of deposit — or a 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 the old ones. banking products until they mature or expire.

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