How to Tell if your Money is Safe with Bank

Bank Safe Room

Bank is a trusted financial institution where people keep their money safe while expecting it to grow and earn interest. However, like other companies, banks can face financial struggles, challenges, and can even fail. And if your bank fails, it’ll definitely put your financial well-being at great risk.

For this reason, I’ve compiled the signs that shows a bank is struggling and challenging, and steps you can take to protect your accounts. No matter which bank you chose to keep your money, you can take a proactive approach to making sure your funds are safe at your chosen financial institution.

Here are Banks Safety Checklist

The bank safety checklists are factors to consider when choosing a bank to safe your money and other valuable assets that bank can safe.

Insurance Coverage

Before you choose a bank, check whether the bank has an insurance coverage. Only deposit your money and other valuable assets in banks that’re insured by the Federal Deposit Insurance Corporation (FDIC) or credit unions that state that they’re insured by the National Credit Union Administration (NCUA).

Mind the Limit

Even though your money is insured, the insurance coverage is limited to $250,000 per person or per account or per entity. If you have additional funds or assets, consider depositing them at another bank or putting them into certificates of deposit, which are also FDIC-insured.

Research your Bank

The Federal Deposit Insurance Corporation (FDIC) keeps its problem bank list confidential, but Weiss Ratings uses a similar grading system for its Bank Safety Ratings. This rates banks by letter grade and lets you to look up your bank. You can also evaluate your bank’s Texas Ratio.

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Follow the News

You need to be aware of any news or updates that states the possibility of your bank being acquired, sold or fold up. This is usually a sign of financial distress.

Signs a Bank could be in Financial Distress

If you’re being bothered about your local bank, whether your money is safe or unsafe, there are several signs that can alert you when a bank is in financial trouble. Here are signs your bank is financially distressed:

  • Layoffs Bankers/Accountants
  • Shutdown Multiple Branches
  • Significantly Increased Fees
  • Eliminates Incentives such as Fee-free Accounts

Signs like those highlighted above often shows that bank in financially difficulties and banks that are attempting to conserve cash. You can also check for signs such as comparing rate of declining deposits for the current year over last year by looking up your bank on the FDIC website.


If a bank is facing challenges and struggling financially, it may be because such bank doesn’t have enough cash on hand to pay out all the money on request by customers. This is because banks lend out funds to other customers. Like I said, Banks are trusted financial institutions, but with that, it’s also required to checklist bank’s safety before you deposit your funds and valuable assets into them.

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