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Is Your Money Safe?
What FDIC covers, how soon it will pay, and how to check if your bank is insured
On March 10th, Silicon Valley Bank (SVB) experienced a bank run. Anyone who has seen It’s a Wonderful Life knows how these play out — customers of the bank lose trust and withdraw their money en masse. The result? The bank fails.
SVB’s failure is the second largest in U.S. history. The bank financed many small tech companies and start-ups as well as California wineries and farms.
Over the weekend, the Federal Deposit Insurance Corporation (FDIC) took control and is now managing SVB’s customer deposits. Unfortunately, since the FDIC only insures up to $250,000, about 90% of deposits were not covered. Many of those banking with SVB will not make payroll.
This morning, I found out that yet another bank had failed over the weekend. New York-based Signature Bank was closed by regulators on Sunday. It is the third largest bank failure in U.S. history.
Is it time to panic?
No.
When faced with a potential crisis, it’s best to take a step back and THINK instead of giving in to your emotions.
The U.S. Treasury Department and other bank regulators have stated that the depositors of Signature Bank and SVB will…
