The FDIC going broke?

We could always rest assured that our money was safe if it was placed in the bank. Even if the bank got robbed or if the bank failed your money was still safe. The basic insurance amount covered by the FDIC is $250,000 per depositor, per insured bank. This is probably more than enough to cover most peoples basic savings and checking accounts.

Today it was reported that the FDIC may now need a bailout. Because of all the failed banks the FDIC may need to draw cash from banks or the federal government.

During the early 1990’s a similar event occured. It was called the savings and loan crisis and the FDIC was forced to borrow $15 billion from the US Treasury to cover the peoples money.

Don’t worry too much, your money is still covered by the government up to $250,000 so don’t head to the bank and withdraw your savings account and put it under your mattress. Your money is still more safe in the bank than in your home. Remember, this has happened before and everything worked out alright.