With the Silicon Valley Bank fallout, how Safe is your Money?
Just yesterday, we mentioned that the Federal Deposit Insurance Corporation (FDIC) took control of the Silicon Valley Bank (SVB) for a nominal £1. While this caused massive shockwaves in the financial and technological industries, it left many in the US with one pertinent question: Is my money safe in any bank?
Let’s take a look at one of the main concerns here. The FDIC is kind enough to ensure bank values up to $250,000. For normal citizens with less than that, your money should be perfectly fine with no worries. However, there are massive companies that had more than that saved in SVB, somewhere in the billions on occasion.
The Biden Administration is trying to put as many fears to bed by saying that even uninsured funds will be available as soon as the FDIC sorts out the financial dilemma. Until that is sorted, we have the big tech and financial companies that deposited in SVB struggling to pay employees and clients. One of the companies that held about $150 million there is Roblox, but that’s ok. It has billions more saved in other banks.
That’s the critical message the Biden Administration and FDIC want to carry forward. They want the massive companies with millions to save to make sure they scatter their funds across several banks. Placing all their eggs in one basket is not wise in these cases. I’d venture to say that even individuals will less money should do the same.
So, to answer the question: they say it’s still safe to deposit your money in banks as long as you distribute your financial assets wisely. The FDIC and government are trying their best to prevent widespread panic and everyone withdrawing all their money in the same period.