Silicon Valley Bank closed in March 2023 and no longer exists as an independent bank

Silicon Valley Bank (SVB) failed on March 10, 2023, after a run on deposits. The bank is not operating, and you cannot open a new account there or conduct business with it. If you had money in SVB when it closed, the Federal Deposit Insurance Corporation (FDIC) took over and protected your deposits up to the insurance limit.

What happened next depends on how much money you had there and what type of account it was. Most depositors got their money back, but the process and timeline varied. Understanding what occurred and where your funds went matters if you were affected or are trying to learn how bank failures work.

Key Takeaways

  • Silicon Valley Bank failed on March 10, 2023, and the FDIC took control of all deposits and assets.
  • Deposits under $250,000 per account type were fully protected by FDIC insurance and returned to depositors.
  • Deposits above $250,000 were initially frozen but most depositors eventually recovered their funds through a government backstop.
  • Your money was transferred to a new bank or returned to you; SVB itself no longer processes any accounts.

How the FDIC protected your deposits

When a bank fails, the FDIC steps in when ready to protect depositors. The FDIC insures up to $250,000 per depositor, per bank, per account type. This means if you had a checking account with $200,000 at SVB, that money was fully covered. If you had $300,000, the first $250,000 was insured and the remaining $50,000 was at risk.

The FDIC's job is to return your insured deposits as quickly as possible. In the SVB case, most people with balances under $250,000 had access to their money within days. The FDIC either transferred accounts to another bank or issued checks to depositors. You did not have to do anything special — the FDIC contacted you using the information SVB had on file.

Account type matters for insurance purposes. A checking account, savings account, and money market account are each insured separately up to $250,000. If you had $200,000 in checking and $200,000 in savings at SVB, both were fully covered because they are different account types.

What happened to deposits over $250,000

Deposits above the $250,000 insurance limit were initially at risk when SVB failed. However, the U.S. government announced a systemic risk exception on March 12, 2023 — two days after the failure. This meant that all SVB depositors, regardless of balance, would be made whole. The government did this to prevent a wider banking crisis.

Under this exception, even depositors with $500,000 or $5 million at SVB eventually recovered their full balance. This was not automatic insurance — it was a special government decision made because SVB's failure posed a risk to the broader financial system. The FDIC used the Deposit Insurance Fund and borrowing authority to cover the uninsured portion.

The recovery process took longer for uninsured deposits. While insured amounts were returned within days, uninsured balances sometimes took weeks or months to be fully restored. The FDIC kept depositors informed of the timeline through letters and updates.

How to learn about you had money at SVB

If you are not sure whether you had an account at Silicon Valley Bank, check your old bank statements, debit cards, or online banking history. SVB primarily served technology companies, startups, and venture capital firms, so if you worked in those industries or received payroll deposits, you may have had an account there.

You can also contact the FDIC directly to ask about any accounts in your name. The FDIC maintains records of all failed banks and their depositors. Call the FDIC's Customer information Program at 1-877-ASK-FDIC (1-877-275-3342) or visit the FDIC website to search for information about your account.

If you had money at SVB and received a check or transfer from the FDIC, keep that documentation. You may need it for tax purposes or if questions arise later about the recovery.

Where your money went after the closure

The FDIC had two main options for returning your deposits: transfer your account to another bank or send you a check. In the SVB case, most accounts were transferred to First-Citizens Bank on March 27, 2023. This meant your account straightforward moved to a new bank with the same balance and account number (in most cases).

If your account was transferred, you could use your debit card and online banking when ready at First-Citizens. You did not have to open a new account or reapply. The FDIC handled the entire transfer, and you received a letter explaining what happened and how to access your money.

Some depositors received checks instead of account transfers, depending on their account setup. These checks were issued by the FDIC and could be deposited at any bank. The FDIC sent checks to the address on file at SVB, so if you had moved, you may not have received it when ready.

What this means for your banking going forward

The SVB failure is a reminder of why FDIC insurance matters. Even though SVB was a large, well-known bank, it failed because of poor management and market conditions. Your deposits are only protected up to $250,000 per account type per bank, so if you have more than that, you should spread it across multiple banks or account types.

You do not need to do anything special to get FDIC insurance — it is automatic when you open an account at an FDIC-insured bank. Most banks display the FDIC logo and insurance information on their website. If you are opening a new account, confirm that the bank is FDIC-insured before depositing money.

If you were affected by the SVB closure and still have questions about your account, contact the bank where your account now lives (likely First-Citizens) or the FDIC directly. Both can provide documentation of your recovery and answer questions about what happened to your specific deposits.

Frequently Asked Questions

Did I lose money if I had more than $250,000 at SVB?

No. The government made all SVB depositors whole, including those with balances above $250,000. This was a special decision made to prevent a wider banking crisis. You recovered your full balance, though uninsured amounts took longer to process than insured ones.

How long did it take to get my money back?

Insured deposits (under $250,000) were typically returned within one to three business days. Uninsured deposits took longer — sometimes two to four weeks — because the FDIC had to arrange the systemic risk exception funding. The exact timeline depended on your bank and account type.

Can I still access my SVB account online?

No. SVB no longer exists. If your account was transferred to First-Citizens Bank, you can access it through First-Citizens' online banking. If you received a check, you would have deposited it at another bank of your choice. Contact the bank where your account now lives for access details.

What if I never received my money or a letter from the FDIC?

Contact the FDIC's Customer information Program at 1-877-275-3342 or visit the FDIC website. They can confirm whether your account was transferred, whether a check was issued, and where it was sent. If a check was lost, the FDIC can issue a replacement.

Does this mean my current bank could fail too?

Any bank can fail, but FDIC insurance protects your deposits up to $250,000 per account type. To reduce risk, keep no more than $250,000 in one account type at one bank. If you have more, spread it across multiple banks or account types so all of it is insured.