Finance

Neighborly contact information:

email [email protected]
telephone (866) 432-1170

If you received an email from Neighborly, you likely have purchased Somerville Minibonds with a Neighborly account that you created at the time of purchase. (Residents could purchase Minibonds by either opening a Neighborly account or by using their own non-Neighborly broker-dealer.) Neighborly is going out of business. Neighborly is informing you that you’ll need to transfer your Neighborly account to another broker-dealer by December 12, 2019. The last day to transfer your Neighborly account is December 27, 2019.

Yes, your money is safe. There will be no interruption of payments by the City of principal and interest on the Minibonds. These funds are being held in customer accounts by Pershing LLC, a custodian, for the benefit of the Minibond owners. Also, Minibond owner accounts are insured through the Securities Investor Protection Corporation (“SIPC”) for up to $500,000 per account.

Neighborly tells us that if you transfer by December 12, 2019, there is no charge. After December 12, 2019 a $65.00 fee will be charged (this is an ACA/Transfer fee). The City is trying to have these fees reduced or removed, but please note that there is no guarantee that these charges will be changed.

Residents had the option of buying Somerville Minibonds by either opening a Neighborly account or by using their own non-Neighborly broker-dealer. If you do not have a Neighborly account, then your account is not affected by Neighborly going out of business and you do not need to take any action.

Fortunately, we have heard from other Minibond holders that transferring your Minibond account can be done relatively easily. The first step is to identify a new broker-dealer. There are a number of broker-dealers in Somerville and the surrounding area, and the bank where you have your checking or savings accounts may be able to provide broker-dealer services or otherwise assist you. We have been told that many broker-dealers charge no fee to set up an account and have no minimum dollar amount for deposit.

Neighborly has informed us that once you set up an account with your new broker-dealer, you should tell your new broker-dealer that you wish to transfer your Neighborly account to your new account. Have your Neighborly monthly statement or Neighborly account number available and bring a photo ID. It may be helpful to bring the Neighborly email notice as well. This transfer process is called ACAT (Automated Customer Account Transfer).

No, the City is not legally allowed to give any sort of financial advice. There are a number of broker-dealers in Somerville and the surrounding area, and the bank where you have your checking or savings account may be able to provide broker-dealer services or otherwise assist you.

For access to your monthly statements, until December 27, 2019, you can continue to login at www.neighborly.com and sign into your account with your credentials. Your monthly statement from Neighborly includes helpful information about your account. 

After December 27, 2019, Neighborly will no longer exist and your account will be held by Pershing LLC, a custodial agent, as an “orphaned” account. This means that the only service Pershing is able to provide is to sell your Minibonds or transfer them to another broker-dealer if you call and instruct them to do so. At this time, it hasn’t been decided what fees, if any, might apply to an orphaned account, and the City is working to have any potential fees reduced or removed for a period after December 27, 2019 (a grace period). Please note that there is no guarantee that these charges will be changed. Pershing’s telephone number is (201) 413-3333.

Yes, you can sell your Minibonds before December 27, 2019 by contacting Neighborly and telling them that you want to sell your Minibonds. Neighborly will be able to further assist you with any questions you may have regarding selling and/or pricing your Minibonds. Neighborly can be reached by email at [email protected] or by telephone at (866) 432-1170. After December 27, 2019 you can sell your Minibonds by contacting Pershing at (201) 413-3333.

Neighborly tells us that the new broker is required to initiate and submit the transfer and that once the transfer is submitted it takes up to 3 business days for the process to be completed.

Yes, you can call Linda Dubuque at (617) 625-6600 x3510 or email her at [email protected].