Should you be worried about your money, your bank or the U.S. banking system? Experts weigh in
Publishing timestamp: 2023-03-14 11:25:47
Summary
The unexpected shutdowns of Silicon Valley Bank and Signature Bank have raised concerns about the safety of deposits and the banking system as a whole. Experts explain what a bank run is, how FDIC insurance works, and offer tips for keeping deposits secure. While bank failures are rare, recent events have highlighted potential risks, such as large withdrawals and low interest rates. However, banks are covered by FDIC insurance for up to $250,000 per depositor, and there are options for spreading deposits across multiple banks or investing in government-backed securities. While the two banks that failed specialized in riskier assets, the likelihood of a national wave of bank issues seems low, and banks are in a stronger position now due to new regulations imposed after the 2008 financial crisis.
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Keywords: personal loans, joe biden, business news, personal finance, economic events, united states, interest rates, fdic, investment strategy, banks, signature bank, personal saving, carolyn mcclanahan,