government has jumped in to offer special protection for depositors in SVB and Signature Bank-even on funds above the $250,000 that weren’t insured. (This figure is $500,000 in deposits per institution for joint accounts.) government debt.įDIC insurance covers up to $250,000 in deposits per account holder per institution-or put differently, you get $250,000 in protection at each bank where you have money stored. This protection is backed by the Deposit Insurance Fund, which receives money from two different sources: Insurance premiums paid every year by FDIC-member banks, and interest earned on money invested in U.S. Treasury, and it protects depositors like you from bank failures by insuring funds held at more than 4,700 American financial institutions, including more than 4,100 commercial banks-or, in other words, virtually every bank in the country. The FDIC is a nonprofit, self-regulating organization with close ties to the U.S. The reason revolves around something called “FDIC insurance.” FDIC Insurance If the answer is “yes,” you might need to take action-but honestly, you still might not. If the answer is “no,” you don’t need to worry. “Do I have more than $250,000 held in one or more accounts at any one bank?” Here’s the quickest way to determine whether you need to worry at all about the money in your bank. New York’s Signature Bank ( SBNY ) also failed and was seized by the government over the past week or so a group of big banks are trying to bail out California’s First Republic Bank ( FRC ) and Switzerland’s largest bank, Credit Suisse ( CS ), will borrow up to $54 billion from the nation’s central bank to try to stay afloat.Īll of these headlines have sparked concerns from everyday Americans, who are now asking themselves “Is my deposit safe?” and “Should I move my money to another bank?”įor the vast majority of readers, the answers will be “yes” and “no,” respectively. SVB wasn’t alone in its troubles, mind you.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |