Three Considerations for Stashing Cash After Bank Failures

People are understandably nervous about the safety of their cash accounts. The three-bucket method helps you divide your funds based on when you’ll need to access them.

Three buckets are lined up. One looks empty, one has coins in it, and the third is filled with cash.
(Image credit: Getty Images)

Ever since the early-March failures of Silicon Valley Bank and Signature Bank, as well as the liquidation of Silvergate Bank and the more recent failure of First Republic Bank on May 1, clients have been asking what they should do with their cash. They want it to have the liquidity they need without being unprotected should the institutions they have it in become unstable. Everyone’s financial situation is unique, but there are some general guiding principles to consider when thinking about the best places to put your shorter-term money.

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Samuel V. Gaeta, CFP®
Principal, Director of Financial Planning, Defined Financial Planning

As Principal and Director of Financial Planning, Sam Gaeta helps clients identify financial goals and make plan recommendations using the five domains of financial planning — Cash Flow, Investments, Insurance, Taxes and Estate Planning. He is responsible for prioritizing clients' financial objectives and effectively implementing their investment plans and actively monitors the ever-changing nature of clients' financial and investment plans.