Bank Balance Protection

Clients and Friends 

You might have noticed headlines that dominated the media throughout the weekend and into this week regarding the Silicon Valley Bank and Signature Bank failures.  Since the banking issue was announced the assets were ultimately seized by the Federal Depository Insurance Corporation (FDIC) and the Federal government extended FDIC coverage to fully protect all customers, including those with balances above the FDIC insurance limit.

We have been in touch with several of the local banks and you most likely have received a communication from your bank explaining the details as to how this happened and its impact on you.  As the Hustle Firm and your trusted advisor, we are sending this communication to help you understand the potential risks as it relates to your bank account balances and actions you can take to make sure your account balances are protected.

Even though extended coverage was put in place, this level of protection is not standard.  If you maintain higher balances in your bank accounts, it’s important to understand how much of your money falls under the FDIC insurance limit. Otherwise, some of your deposits could be at risk if your bank has a liquidity issue.

Currently, the FDIC insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC recognizes these ownership categories when protecting deposits:

  • Individual
  • Joint
  • Certain retirement accounts (such as an IRA)
  • Revocable and irrevocable trust account
  • Employee benefit plan account
  • Corporation, partnership or unincorporated association account
  • Government account

FDIC insurance extends to all deposit accounts at insured banks (checking accounts, savings accounts, money market accounts, CDs and others).

The FDIC insures these accounts, both the principal and interest earned, up to the specified limits. The FDIC does not insure stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if you buy them at an FDIC-insured bank. Keep this in mind if you have those types of assets at a bank.

Over the last two days we have been working with clients with account balances over $250,000 on strategies to stay under the FDIC limits.  Please let us know if you interested in reviewing your situation and potential options to protect your cash balances.

Stay Strong!


The content included above supports RDG + Partners marketing of professional services and is not written tax advice directed at the specific facts and circumstances of any person or entity.  If you are interested in the topics presented, we encourage you to contact us or an independent tax advisor to determine if any topics apply to your situation.  This content is not intended by RDG + Partners to be used, and cannot be used, by any person or entity for purposes of avoiding penalties that may be imposed under the Internal Revenue Code.  The information contained is general in nature and based on authorities that are subject to change.  It is not, and should not be construed as, accounting, tax or legal advice provided by RDG + Partners to the reader as prospective or retroactive changes in tax laws or other factors could affect the information contained herein.