The FDIC and the Collapse of Silicon Valley Bank (SVB) and Signature Bank
Perhaps you have been following the news this weekend about the collapse of Silicon Valley Bank (SVB) and Signature Bank. Or perhaps you logged in this morning and need to get caught up.
Important notes: If you have deposits in either of these banks, President Biden’s administration has assured that your money will be available to you, at no cost to the taxpayer. Federal Deposit Insurance Corporation (FDIC) insured banks offer $250,000 in protection, but for customers with more than $250 in deposits the federal government will use the Deposit Insurance Fund (funded mainly through quarterly assessments on insured banks) to cover.
Read the statement from the FDIC here:
Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC
Do you bank with SVC ?
The main office and all branches of Silicon Valley Bank will reopen today Monday, March 13, 2023 during normal business hours. The FDIC recommends writing a check for your available balance and depositing that check into an account at another financial institution as the quickest and easiest way to withdraw insured funds. Customers with accounts in excess of $250,000 should contact the FDIC toll–free at 1-866-799-0959.
Do you have more questions about FDIC insurance and how it works? The FDIC was created in 1933 following thousands of bank failures. Since coverage began in 1934, no depositor has lost insured funds due to a bank failure. The independent government agency is funded by premiums paid by banks and savings associations.
CNBC put together a good summary here:
Are your bank deposits FDIC-insured? What to know in the wake of Silicon Valley Bank, Signature Bank closures
Are your deposits covered by the FDIC? To determine if a bank is FDIC-insured, you can ask a bank representative, look for the FDIC sign at your bank, or you can use the FDIC’s BankFind tool.
Want to learn more about how you can have all your money in one bank and have it insured? Check out: