What happens to my money if my bank goes under?

The FDIC insures deposits up to $250,000 per depositor, per bank, per ownership category. If your bank fails, you typically get access to your insured deposits within 1-2 business days — either through a new account at an acquiring bank or by receiving a check from the FDIC.

Is my money safe if a bank fails?

Yes, up to $250,000 per depositor per bank. This covers checking, savings, money market accounts, and CDs. Since the FDIC was created in 1934, no depositor has lost a single penny of FDIC-insured deposits. Amounts over $250,000 at a single bank may not be fully recovered.

How long does it take to get your money if a bank fails?

For insured deposits, typically 1-2 business days. The FDIC usually arranges for another bank to acquire the failed bank over a weekend, and customers wake up Monday with their accounts at the new bank. For uninsured amounts (over $250,000), recovery depends on the bank's remaining assets and can take months.

What Happens If Your Bank Fails? FDIC Insurance Explained

The FDIC has insured bank deposits since 1934, and no depositor has ever lost a penny of insured funds. If your bank fails, you get your money (up to $250,000) within 1-2 business days — usually without any action on your part.

FDIC Coverage Limits

Account Type	Covered?	Limit
Checking accounts	✅ Yes	$250,000
Savings accounts	✅ Yes	$250,000
Money market deposit accounts	✅ Yes	$250,000
Certificates of deposit (CDs)	✅ Yes	$250,000
Cashier’s checks from the bank	✅ Yes	$250,000
Stocks, bonds, mutual funds	❌ No	Not covered
Crypto assets	❌ No	Not covered
Safe deposit box contents	❌ No	Not covered
Annuities	❌ No	Not covered
Life insurance	❌ No	Not covered

How to Maximize FDIC Coverage

Strategy	Coverage Amount
Single account (one person)	$250,000
Joint account (two people)	$500,000 ($250K each)
Single + joint (couple)	$750,000 total
IRA/retirement accounts	Additional $250,000
Trust accounts (per beneficiary)	$250,000 per beneficiary (up to 5)
Maximum per couple at one bank	$1.5 million+

What Happens When a Bank Fails

Step	What Happens	Timeline
1	Regulators close the bank (usually Friday evening)	Day 0
2	FDIC appointed as receiver	Day 0
3	FDIC either finds an acquiring bank or prepares payouts	Over the weekend
4	Acquiring bank takes over (most common)	Day 1-2 (Monday)
5	Your accounts transfer to the new bank automatically	Day 1-2
6	Debit cards, checks, and direct deposit continue working	Day 1-2
7	If no acquiring bank, FDIC mails checks	Within 2 business days

Recent Bank Failures

Bank	Year	Assets	Depositors Made Whole?
Silicon Valley Bank	2023	$209 billion	Yes (all depositors, including uninsured)
Signature Bank	2023	$110 billion	Yes (all depositors)
First Republic Bank	2023	$229 billion	Yes (acquired by JPMorgan)
Washington Mutual	2008	$307 billion	Yes (acquired by JPMorgan)

What About Amounts Over $250,000?

Situation	What Happens
Insured portion (up to $250K)	Returned within 1-2 business days
Uninsured portion (over $250K)	You become an unsecured creditor of the bank
Recovery rate (uninsured)	Historically 60-80% on average, but varies
Timeline for uninsured recovery	Months to years
How to avoid this	Spread deposits across multiple banks

Credit Unions: NCUA Coverage

NCUA vs. FDIC	Details
Coverage amount	Same — $250,000 per depositor per institution
What’s covered	Same account types as FDIC
Who it covers	Credit union members
Track record	No insured depositor has ever lost money
How to verify	Look for “Federally insured by NCUA”

The Bottom Line

If your bank fails, your money is safe up to $250,000 thanks to FDIC insurance. You’ll typically have access within 1-2 business days, often without any action required. To protect amounts above $250,000, spread your deposits across multiple FDIC-insured banks, use joint and trust account structures, or use a service like IntraFi (formerly CDARS) that spreads deposits automatically.