Are Your Bank Deposits Safe? What to Know

Recent bank failures unnerved savers about keeping bank deposits safe, but your money is protected — up to certain limits.

A drawing of a large piggy bank with people climbing a latter to drop coins in.
(Image credit: Getty Images)

Unless you are well into your nineties or have lived in a country without an established banking system, it’s highly unlikely you’ve ever lost money due to a bank failure. Since the Federal Deposit Insurance Corp. was created in 1933, no bank customer has lost a penny in insured deposits, even during the darkest days of the 2008–09 financial crisis.

But that didn’t prevent some people from worry about keeping their savings safe in March when Silicon Valley Bank failed and regulators assumed control. It was the largest bank failure since the financial crisis, and it was followed by a cascade of unnerving banking news, including the collapse of Signature Bank, the shutdown of Silvergate Capital, and efforts by some of the country’s largest banks to shore up the finances of regional giant First Republic Bank after customers withdrew $70 billion in deposits. 

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Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.

With contributions from