How to Know If Your Money Is Safe in the Bank

The collapse of Silicon Valley Bank (SVB) and Signature Bank earlier this month was the second and third largest bank failures in US history . Although these institutions served primarily the technology industry, it is natural to feel uneasy. A question that worries many bank customers: is my money safe?

Should you be concerned about cash held in your bank? Here’s what you need to know to be sure how your money is doing in the bank.

Is my money safe?

Short answer: Yes.

The Federal Deposit Insurance Corporation (FDIC) guarantees account deposits up to $250,000 and almost all banks are FDIC insured. Credit unions are insured by the National Credit Union Administration .

If you have more than $250,000 in individual bank accounts, any amount in excess of $250,000 is considered uninsured. However, even without the threat of bank failure, it makes sense to invest that much money in another financial institution.

Fortunately (at least in this case), most of us don’t have more than $250,000 in liquid assets. This means we are insured by the $128 billion Deposit Insurance Fund , which CBS says is ” totally sufficient ” to continue insuring your funds.

However, the collapse of the banks adds a sense of unease to an already shaky economy. Here are some things you can control:

• Look for the FDIC logo on bank teller windows or at the entrance to a bank branch.
• View the FDIC Banking Package for a list of FDIC insured banking institutions.
• Use the FDIC Electronic Deposit Insurance Estimator to calculate insurance coverage for various bank deposit accounts.
• Be aware of where your money is kept and how much you have in each account.
• If you have more than $250,000 in the bank, you can split your funds into different FDIC-insured accounts.

As an individual client, it’s nearly impossible to predict if your bank is going to fail. What you can do is set up a Google alert for your bank in case there is news about it and keep an eye on the stock price.

But the bottom line: if you have less than $250,000 in your FDIC-insured US bank account, you don’t have to live in a constant state of panic.