How Safe Is My Bank?

The global banking industry is rounding out one of its most dramatic weeks since the financial crisis. It’s left consumers across the US concerned about what — if anything — they need to do to keep their money safe. 

Here at Bloomberg Wealth, we’ve been calling financial advisers and experts all week. This newsletter shares the most important things they told us that you should know now.

But first, if you’re wondering whether there are safe places to put your money in the midst of all this uncertainty, we talked to four experts about where to invest right now.

Here’s what happened:

• Silicon Valley Bank on Friday became the second-biggest bank failure in US history.
• On Sunday, Signature Bank was seized by regulators after a surge of customer withdrawals — making it the third-biggest bank failure in history.
• That same day, the government announced a new backstop that Federal Reserve officials said was big enough to protect the entire nation’s deposits.
• Worries mounted this week over the health of a much bigger, global bank — Credit Suisse, the international financier to the world’s rich.
• Credit Suisse sought to reassure investors by opening a $54 billion credit line with the Swiss central bank. Meanwhile, First Republic, another troubled US regional lender, is exploring options including a sale.

And here are answers to some common questions we’ve been getting: 

Is my money safe at the bank? By and large, yes. If you have $250,000 or less in qualified accounts at FDIC-insured banks, you’ll get the money back if your bank fails. The government’s new program covered deposits even larger than that when Silicon Valley Bank failed.

Do I need to open an account at a different bank if I have more than $250,000 saved? There’s a good chance you don’t. That’s because FDIC insurance kicks in not just for individuals’ qualified accounts, but also for up to $250,000 for each co-owner of a joint account at the same bank. So a married couple could get $1 million of FDIC coverage if each spouse has an account with $250,000 and they co-own a joint account with $500,000.

This is a condensed version of the Bloomberg Wealth weekly newsletter. Click here to subscribe and read the full edition.

— Charlie Wells

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