Silicon Valley Bank closed in March 2023 and no longer operates

Silicon Valley Bank (SVB) failed on March 10, 2023, after a run on deposits. The bank is not operating. If you had money in SVB at the time it closed, the Federal Deposit Insurance Corporation (FDIC) took control of the bank and your deposits were transferred to another institution or returned to you through the FDIC insurance process.

The bank's collapse happened quickly. SVB had invested heavily in long-term bonds when interest rates were low. When the Federal Reserve raised rates sharply in 2022, those bonds lost value. As depositors learned about the losses and rushed to withdraw their money, the bank ran out of cash and regulators shut it down.

What happened next depended on how much money you had in the account. Deposits under $250,000 per account category were fully protected by FDIC insurance. Deposits above that amount were initially at risk, but the FDIC and the U.S. Treasury later announced that all depositors would be made whole—meaning even uninsured deposits would be paid in full.

Key Takeaways

  • Silicon Valley Bank ceased operations on March 10, 2023, when the FDIC took control after the bank failed.
  • The FDIC automatically protected deposits under $250,000 per account category through its standard insurance coverage.
  • Deposits above the $250,000 limit were later covered in full through a special FDIC action, so all depositors received their money.
  • Your deposits were either transferred to another bank or paid out directly by the FDIC, depending on the acquiring institution.

How the FDIC handled SVB deposits

When SVB failed, the FDIC became the receiver—meaning the agency took over the bank's assets and liabilities. The FDIC's first step was to determine which deposits were insured and which were not. Standard FDIC insurance covers up to $250,000 per depositor, per bank, per account category. A checking account and a savings account at the same bank are separate categories, so you could have $250,000 in each and both would be fully covered.

For deposits under $250,000, the FDIC paid out insurance quickly. Depositors received their money either through a transfer to another bank or through a check from the FDIC. For deposits above $250,000, the situation was initially uncertain. However, on March 12, 2023—two days after the closure—the U.S. Treasury, the Federal Reserve, and the FDIC announced that all SVB depositors would receive their full balance, including amounts above the insurance limit. This action was taken to prevent broader damage to the banking system.

The FDIC sold SVB's assets to First-Citizens BancShares in March 2023. Some depositors' accounts were transferred directly to First-Citizens, while others received payment from the FDIC. The method depended on the account type and the FDIC's operational decisions at the time.

What to do if you had an SVB account

If you had money in Silicon Valley Bank when it closed, you should have received notification from either the FDIC or the acquiring bank. Check your mail and email for official correspondence. The FDIC sends notices to the address on file at the bank, so if you have moved since opening the account, you may need to contact the FDIC directly to update your information.

To find out the status of your deposit, visit the FDIC's website and use their deposit insurance estimator or search for information about SVB specifically. You can also call the FDIC's customer service line at 1-877-ASK-FDIC (1-877-275-3342). Have your account number ready if you have it, though the FDIC can look up accounts by name and address.

If you received a check from the FDIC and have not cashed it, deposit it as soon as possible. FDIC checks do not expire, but holding cash outside a bank account means your money is not earning interest and is not protected by insurance if something happens to the check.

The difference between bank failure and account closure

A bank failure is different from a bank deciding to close an account or a customer closing their own account. When a bank fails, regulators shut it down because it cannot meet its obligations to depositors. The FDIC steps in to protect insured deposits and manage the process. When a bank straightforward closes a branch or an account, the customer is usually notified in advance and given time to move their money.

SVB's failure was sudden. Depositors did not have advance warning. This is why the FDIC's insurance system exists—to protect people from exactly this scenario. The fact that all SVB depositors were made whole, including those above the insurance limit, was a policy decision made by federal authorities to stabilize the financial system, not a standard outcome of bank failure.

Why SVB failed and what changed afterward

SVB's failure exposed a risk that many banks had taken on during years of low interest rates. Banks borrowed short-term (through deposits that could be withdrawn anytime) and lent long-term (through bonds that paid fixed rates). When rates rose, those bonds became worth less on the open market. SVB had a larger concentration of deposits from technology companies than most banks, and when tech companies began withdrawing money quickly, SVB could not meet the demand.

After SVB's failure, regulators increased scrutiny of how banks manage interest rate risk. Banks are now required to stress-test their portfolios more frequently and hold more liquid assets. The Federal Reserve also created a new lending program to help banks access cash quickly if they face deposit runs, reducing the likelihood of another sudden failure.

If you're looking for a new bank

If your account was at SVB and you were transferred to First-Citizens or another bank, you may want to review whether that institution meets your needs. Check whether it offers the services you use—online banking, mobile deposits, ATM access, customer service hours—and whether its fees align with your usage. If you want to move to a different bank, you can do so at any time. Contact your new bank to set up direct deposit and automatic payments, and notify any employers or services that send you money of your new account details.

When choosing a bank, verify that it is FDIC-insured. You can search the FDIC's bank database on their website to confirm. All national banks and most state banks are FDIC-insured, but it is worth checking if you are opening an account at a smaller or less familiar institution.

Frequently Asked Questions

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

No. Although deposits above $250,000 are normally not covered by FDIC insurance, the U.S. Treasury and Federal Reserve announced that all SVB depositors would receive their full balance. This decision was made to prevent broader financial instability. You should have received your full deposit amount.

How long did it take to get my money back from SVB?

Deposits under $250,000 were typically available within one to two business days. Deposits above $250,000 took longer because they required the special FDIC action. Most depositors had access to their full balance within two to three weeks, though some transfers took longer depending on the acquiring bank's processing.

Can I sue SVB or the FDIC for the bank's failure?

Lawsuits against SVB and its executives were filed, but they are separate from the deposit insurance process. The FDIC's role is to protect deposits, not to compensate depositors for losses beyond their account balance. If you received your full deposit, you have no claim through the FDIC.

Is my money safe in a bank now?

FDIC insurance protects deposits up to $250,000 per account category at each bank. If a bank fails, insured deposits are protected. SVB's failure and the government's response to it actually demonstrated that the system works—depositors were made whole even in an unusual situation. Keeping deposits under the insurance limit at different banks is the standard way to maximize protection.

What if I can't find information about my SVB account?

Contact the FDIC directly at 1-877-ASK-FDIC or visit their website. You can also contact First-Citizens BancShares if your account was transferred there. Have your name, address, and account number ready. The FDIC maintains records of all failed bank accounts and can tell you the status of your deposit.