Is your money safe? Here’s what deposit insurance covers.

The closing of Silicon Valley Bank may have you wondering about FDIC protection. Here’s what you need to know.

A Silicon Valley Bank employee informs people outside its headquarters Friday in Santa Clara, Calif., that the company has shut down. (Justin Sullivan/Getty Images)
4 min

When the U.S. savings and loan crisis hit in the 1980s, I was reporting for my hometown newspaper, the Evening Sun, in Baltimore.

The city editor sent me out to interview depositors of one failed thrift. I’ll never forget arriving and seeing angry, confused and teary-eyed customers waiting in lines stretching for several blocks. It was a scene replicated hundreds of times as the crisis played out, while interest rates and inflation rose.

On Friday, a run on deposits led to the closure of Silicon Valley Bank, making it the second-largest bank failure in U.S. history. The bank was shut down by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

Silicon Valley Bank, lender to some of the biggest names in the tech industry, collapsed on March 10. Regulators moved quickly to avert a meltdown. (Video: Reuters)

The FDIC, in turn, created the Deposit Insurance National Bank of Santa Clara and announced that all insured depositors will have access to their insured funds no later than Monday.

“Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds,” the FDIC said in a statement.

Silicon Valley Bank closed in second-biggest bank failure in U.S. history

The situation provides an opportunity to remind depositors how much of their money is protected by the federal government.

Wondering how safe your bank deposits are? Here’s a primer on FDIC insurance.