Stock market news today: SVB, Dow and S&P 500 updates

Mortgage rates drop in wake of bank failures

A man walks past a branch of Signature Bank in New York city on March 13. (Ed Jones/AFP/Getty Images)

Among the latest banking sector concerns on Thursday is the fate of First Republic, which is reportedly seeking a sale after its stock fell sharply earlier this week amid a credit downgrade and deposit worries. 

For First Republic customers — or any customers whose bank gets intensely scrutinized by investors in the coming days — you may be concerned about the safety of your money. But there’s no need, if your account balance is under $250,000 and your bank is insured by the Federal Deposit Insurance Corporation. If it is and your bank fails, the FDIC will guarantee you your money.

If you have more than $250,000 at your bank, you still may be fully covered if your money is spread against different types of accounts. For instance, if you have a joint account with your spouse you will each be covered up to $250,000, for a total of $500,000 in coverage on that account. Then, in addition, if you have your own individual savings or checking account, that will be insured separately up to $250,000.

Alternatively, if you have more than $250,000 at one bank, you could transfer the money above that threshold to new account or two at other FDIC-insured banks, ensuring no one account has more than $250,000 in it.

In any case, the recent failures of SVB and Signature banks in the past week and growing concerns over individual regional US banks is a good reminder to be aware of where your money is held.

“[It’s] is a wake-up call for people to always make sure their money is at an FDIC-insured bank and within FDIC limits and following the FDIC’s rules,” said Matthew Goldberg, a Bankrate analyst.

The FDIC has different resources on its site. The “bank suite” tool offers a list of FDIC-insured banking institutions and the Electronic Deposit Insurance Estimator calculates the insurance coverage of different deposit accounts at banks.

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