Two banks are merging. Here's what actually happens to your deposit.

Originally reported as: “Bank A and Bank B announce merger deal to form the country's fourth-largest lender by assets”

Two banks announced a merger that will eventually combine their branches, systems, and account bases once regulators approve the deal. For depositors, the immediate reaction is often worry, but a bank merger is very different from a bank failure. In a merger, the surviving bank absorbs the accounts, deposits, and obligations of the other, and existing balances don't simply vanish or reset to zero. What actually changes for customers day to day, and how deposit insurance coverage applies afterward, depends on the details of the deal and the timeline for combining systems.