Bank Failures: What You Need to Know

Failed Banks and Your Accounts

If your bank fails, your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. This includes checking accounts, savings accounts, and money market accounts. However, it's important to note that not all accounts are insured by the FDIC. For example, certificates of deposit (CDs) and money market deposit accounts (MMDAs) are not insured by the FDIC.

If you have more than $250,000 on deposit at a failed bank, you may lose some of your money. However, the FDIC will work with you to minimize your losses.

Loans and Failed Banks

If you have a loan from a bank that fails, you will still be responsible for repaying your loan. However, the FDIC may be able to help you refinance your loan or find a new lender.

Vendors and Failed Banks

If you are a vendor who has an unpaid invoice with a bank that fails, you may be able to file a claim against the receivership. The FDIC will work with you to process your claim.

Bank Failure Statistics

There have been 567 bank failures from 2001 through 2024. The majority of these failures (89%) occurred during the financial crisis of 2008-2009.

Conclusion

Bank failures are a rare occurrence, but they can have a significant impact on depositors, borrowers, and vendors. The FDIC is committed to protecting the financial system and minimizing the impact of bank failures. If you have any questions about bank failures, please contact the FDIC at 1-877-275-3342.