A lot of money is sitting in US bank accounts without any federal protection. According to the Federal Deposit Insurance Corporation (FDIC), Americans have a whopping $7.162 trillion in uninsured deposits. That’s a lot of cash!
What does this mean? The FDIC insures deposits up to $250,000 per account. Anything above that amount is not covered if a bank fails. This means if your bank goes under and you have more than $250,000 in your account, you could lose your money.
The FDIC is worried. They’re seeing a trend of larger banks relying more on uninsured deposits. This makes the banking system more vulnerable to bank runs, like the ones we saw earlier this year.
Remember Silicon Valley Bank? The government had to step in and protect all deposits, even those above the $250,000 limit. This was a one-time exception, and it’s not guaranteed to happen again.
The FDIC is taking action. They’re asking banks to provide more information about their deposits, both insured and uninsured. This will help them better track and manage risks.
What should you do?
It’s important to be aware of the risks associated with uninsured deposits. If you have more than $250,000 in a bank account, you might want to consider diversifying your savings. This could mean spreading your money across multiple banks or investing in other assets. /p>
