American International Group, Inc. (AIG) is a large corporation primarily involved in the insurance business. They are the top underwriter of industrial and commercial insurance policies in the United States. In addition to their business insurance policies, the corporation also runs AIG Bank. AIG Bank services and bank account options include money market accounts, mortgages, home equity loans and CDs.
Cornelius Vander Starr began AIG in Shanghai in 1919. The original purpose of the business was to sell insurance policies to the people of China. Starr repurposed and moved the business to New York City in 1949 after Mao Zedong's communist regime took control of China.
From AIG's new headquarters in New York, Starr expanded across the globe before turning it into a publicly-traded corporation in 1969. During that time, AIG shifted from personal insurance to high-dollar corporate insurance.
In a move to expand into the consumer sector, AIG chartered AIG Bank in 2000. In 2005, AIG became embroiled in a fraud scandal that resulted in a $1.6 billion fine.
In 2008, AIG suffered from a downgraded credit rating, and they were unable to secure the credit required to operate. After the company's stock value dropped by more than 95 percent, a federal bailout saved the company. In 2010, AIG Bank posted a net income of $7.786 billion, but the company still holds a debt of over $683 billion.
AIG Bank Services
AIG Bank specializes in FDIC-insured consumer deposit and loan products. AIG Bank operates nationwide but operates primarily without traditional branches. The bank serves most customers through online, phone and standard mail options. This allows AIG to keep their overhead low by serving customers through their main branch, located in Wilmington, Del.
AIG Bank offers four primary bank account options to consumers, including mortgages, home equity lines of credit, money market accounts and certificates of deposit.
AIG Bank has a range of mortgages available to new homebuyers and existing homeowners looking to refinance. Thirty-year, 20-year and 15-year fixed mortgages are among their most popular, but they also offer 5/1 ARM and 5/1 Jumbo ARM mortgages.
For customers already owning a home or property, AIG bank home equity lines of credit are available at competitive rates with an option to proceed with no closing costs.
AIG Signature Money Market Accounts are FDIC-insured. Interest rates are on a five-tier system, depending on account balance.
High-yield CDs from AIG Bank range in terms from six to 60 months.
Although AIG Bank has suffered recently due to the problems of its parent company, they continue to operate and provide a number of financial services in addition to insurance services.