What types of bank deposits are protected?
Checking accounts, savingsaccounts,money marketdeposit accounts, certificates of deposit (CDs), and bank-issued cashier’s checks. You are insured for up to $250,000 when adding up your accounts at one bank. If you have a joint account, you each get $250,000 in coverage, for a potential total of $500,000 in a single joint account. You are also separately insured up to $250,000 at each bank you use. You can calculate your FDIC insurance using a tool on the FDIC’s website called EDIE by clickingHERE.
How can I confirm my bank has FDIC protection?
Check the FDIC’s BankFind website by clickingHEREwhich permits you to search by bank name, such as Citizens Trust Bank, or by website, such aswww.ctbconnect.com.
Why did SVB and Signature Bank fail?
SVB and Signature Bank were unusual banks. SVB had an average deposit balance in each account of over $4 million and only 12% of their deposits were FDIC insured. SVB catered to technology start-up businesses and venture capital companies, or VCs. When large depositors lost confidence in the bank and suddenly withdrew their deposits ($42 billion in one day), it created a “bank run.” At some point, the bank ran out of cash needed to continue paying out withdrawals. At that point, SVB failed. Signature Bank, on the other hand, catered to the cryptocurrency industry, which is also risky. Citing systemic risks by their regulators, they were also closed.
How is Citizens Trust Bank different than SVB and Signature Bank?
Citizens Trust Bank has an entirely different business model than SVB or Signature Bank. Citizens Trust Bank serves minority communities with a focus on consumers and businesses-unlike SVB, which served high tech start-ups, or Signature Bank, which served the crypto industry. Citizens Trust Bank is diversified in terms of our funding, unlike SVB and Signature Bank, which had substantial deposits concentrated in large venture capital entities and crypto deposits. Citizens Trust Bank does not have a lot of uninsured deposits or any exposure to crypto or deposits from the venture capital industry-unlike SVB and Signature Bank. Citizens Trust Bank focuses on well collateralized loans and is not exposed to more risky loans or investments. Citizens Trust Bank is well capitalized, secure, and has substantial liquidity.
