Should depositors worry if their bank fails?

So far, 72 banks failed this year and another one is poised to go belly up according to the Federal Deposit Insurance Corporation. With banks failing, is it time for the beleaguered public to worry about their money in the bank?

Not really. The FDIC covers all depositors for up to $250,000. So that means that you are guaranteed to get back all your deposits within the coverage if your bank happens to fail. Never has a depositor lost his money covered by the FDIC in the corporation’s 75-year history.

“When your money is in a bank that is FDIC insured it is backed by the full force of the United States government, and it doesn’t get any better than that,” said American Bankers Association’s Carol Kaplan. So, if your cash is in an account with less than $250,000 at a bank insured by the FDIC, “there is virtually no way you are going to lose your money.”

Now what if you have more than $250,000 in the bank? Remember that the FDIC covers per depositors so all you have to do is to open another account under a different name (like your wife’s) and the new account. If you won’t be able to, then arrange for the excess to be transferred to a different bank.

If your bank happens to fail, don’t worry. The FDIC will make your deposits available for you.