IndyMac Bank Failure: Making Sure Your Bank Deposits Are Safe

Angry Indymac Bank depositors have been warned by Los Angeles police to remain calm while they wait in line to withdraw funds from the failed bank. About 100 people are concerned they will lose their deposit, since the Federal Deposit Insurance Corporation (FDIC) only insures amounts up to $100,000. (Source: Associated Press, Customers Furious in Day 2 of IndyMac Bank Fed Takeover, July 15, 2008)

Many people, especially those who lived through the Great Depression, may be worried whether their money is safe in their banks. The FDIC insures 100% of your savings, checking and money market deposits and certificates of deposit (CDs) up to $100,000 per FDIC-approved bank. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor per insured bank. So, as long as you are within their guidelines, your money is safe in a bank.

If you have more than $100,000 at any bank, you should move the excess to another bank. Also, many banks sell investment products such as stocks, bonds and mutual funds. Like any other investment firm, these are not insured, and states it clearly on your prospectus. For more detail, see FDIC: Insuring Your Deposits.

Related Reading

1. What is the FDIC?
2. The Great Depression of 1929
3. Is the U.S. Headed Towards Another Great Depression?