What happens if my bank fails?
Key takeaways
- In most cases, a bank failure is the result of owing more to creditors and depositors than what their assets are worth.
- If your bank fails, up to $250,000 of deposited money (per person, per account ownership type) is protected by the FDIC.
- When banks fail, the most common outcome is that another bank takes over the assets and your accounts are simply transferred over. If not, the FDIC will pay you out.
- Funds beyond the protected amount may still be reimbursed, but the FDIC does not guarantee this.