Following the recent collapse of Silicon Valley Bank and Signature Bank, people are increasingly concerned about the safety of their bank deposits. However, banks that are covered by the Federal Deposit Insurance Corporation (FDIC) offer $250,000 of insurance per depositor, per bank, and with Signature and SVB, the government took extraordinary steps to insure deposits above that limit. The Financial Stability Board also maintains a list of banks that are considered “too big to fail,” and the US created a Financial Stability Oversight Council to determine which banks are systemically important to the banking stability in the country.
These banks face unique restrictions that add an extra layer of protection beyond what the banks would do if left to their own devices. However, customers may want to consider shoring up their defenses and having backup plans, such as opening multiple accounts at different banks or purchasing other types of insurance. Ultimately, it is essential to remember that every American’s account is safe, and their deposits are protected.
