Depositors Have Never Lost a Penny at These Community Banks. Here's Why
Following the collapse of three banks in less than a week's time, depositors from around the country have begun to focus on a question they haven't thought about for a long time: Are my deposits safe?
The collapse of SVB Financial and Signature Bank has made many customers and businesses realize that the Federal Deposit Insurance Corp. (FDIC) only insures deposits up to $250,000. So if the amount of deposits that you have in one bank account exceeds that amount and your bank fails, there's no guarantee you'll get those deposits back.
While the federal banking agencies did agree to make depositors whole at SVB and Signature, U.S. Treasury Secretary Janet Yellen told lawmakers recently that uninsured deposits would only be covered if a bank's failure would lead to "systemic risk and significant economic and financial consequences."
Source Fool.com
