Banks that failed in the United States, and where your deposits went

Between March 2023 and early 2024, three banks failed in the United States: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. All three were seized by federal regulators and their deposits were transferred to other banks. If you had money in any of these banks, the Federal Deposit Insurance Corporation (FDIC) protected most or all of it, depending on how your account was structured.

The FDIC insures deposits up to $250,000 per depositor, per bank, per account ownership category. This means if you had $100,000 in a checking account at SVB, that money was fully protected. If you had $500,000, the FDIC covered $250,000 and you would have had a claim for the remaining $250,000—though in practice, all three of these banks' depositors were made whole because the FDIC arranged for other banks to assume the deposits or used its insurance fund to cover uninsured amounts.

If your money was in one of these three banks, you did not lose it. The bank failed, but your deposits moved to a surviving bank or were paid out by the FDIC. What changed is which bank holds your account now.

Key Takeaways

  • Silicon Valley Bank, Signature Bank, and First Republic Bank all failed between March 2023 and May 2024, but the FDIC protected deposits up to $250,000 per account.
  • Uninsured deposits (above $250,000) were also protected at these three banks through FDIC actions, so depositors did not lose money even if they exceeded the insurance limit.
  • Your deposits were transferred to another bank automatically; you did not have to do anything to recover your money.
  • Bank failures are rare and typically happen when a bank makes bad lending decisions or faces a sudden loss of customer confidence that drains its cash reserves.

What happened to Silicon Valley Bank

Silicon Valley Bank (SVB) failed on March 10, 2023. It was the largest bank failure in the United States since 2008. SVB held deposits from technology startups, venture capital firms, and their employees. The bank had invested heavily in long-term bonds that lost value when interest rates rose in 2022. When customers began withdrawing deposits rapidly in early March 2023, SVB did not have enough liquid cash to meet the withdrawals and was shut down by the California Department of Financial Protection and Innovation.

The FDIC took over SVB's assets and arranged for First-Citizens BancShares to assume all of SVB's deposits and loans. Depositors woke up to find their accounts had moved to First-Citizens. The FDIC also made uninsured depositors whole—meaning those with more than $250,000 in the account received their full balance, not just the insured portion. This was an unusual step, taken to prevent broader panic in the banking system.

What happened to Signature Bank

Signature Bank failed on March 12, 2023, two days after SVB. Signature Bank was based in New York and held deposits from cryptocurrency businesses, real estate investors, and other commercial customers. Like SVB, Signature faced rapid deposit withdrawals after the SVB failure spooked customers. The bank's management had also made aggressive lending decisions that left it vulnerable when deposits fled.

The FDIC arranged for Signature's deposits to be assumed by Flagstone Bank (later rebranded). Again, all depositors were made whole, including those with balances above $250,000. The speed of the failure—just two days after SVB—showed how quickly confidence can drain from a bank once customers lose trust.

What happened to First Republic Bank

First Republic Bank failed on May 1, 2024, more than a year after SVB and Signature. First Republic was a wealth management bank based in San Francisco that served high-net-worth individuals and families. The bank had also invested in long-term bonds that lost value as interest rates rose, and it faced deposit outflows as wealthy customers moved their money to larger, more stable banks.

The FDIC arranged for JPMorgan Chase to assume First Republic's deposits and branches. All depositors were protected, including those with uninsured balances. JPMorgan's acquisition of First Republic was the largest bank failure resolution since 2008.

How the FDIC protected your deposits

The FDIC is a federal agency that insures bank deposits. When a bank fails, the FDIC steps in and either arranges for another bank to take over the failed bank's deposits, or it pays depositors directly from its insurance fund. The standard insurance limit is $250,000 per depositor, per bank, per account type.

Account types matter. If you have a checking account in your name at a bank, that is one account type and is insured up to $250,000. If you have a joint account with your spouse at the same bank, that is a separate account type and is also insured up to $250,000. If you have a savings account in your name at the same bank, that is yet another account type, insured separately up to $250,000. This means a married couple could have up to $1 million insured at a single bank by using different account types.

At SVB, Signature, and First Republic, the FDIC went further and protected all deposits, even those above $250,000. This was not required by law but was done to prevent a wider banking crisis. Uninsured depositors at these three banks did not lose money, though this outcome is not may provide at future bank failures.

Why these banks failed

All three banks failed for similar reasons: they invested in long-term bonds, interest rates rose sharply in 2022, the value of those bonds fell, and customers lost confidence and withdrew their deposits rapidly. When a bank faces sudden, large withdrawals—called a "bank run"—and does not have enough cash on hand, it must sell assets quickly, often at a loss. If the losses are large enough, the bank becomes insolvent and regulators shut it down.

SVB and Signature also had concentrated customer bases. SVB served mostly technology startups, which all faced funding pressure at the same time in 2023. Signature served cryptocurrency businesses, which faced regulatory uncertainty. When an entire customer base loses confidence at once, deposits can drain in days.

First Republic's failure was slower. The bank had been losing deposits for over a year as wealthy customers moved money to JPMorgan, Bank of America, and other larger institutions. By May 2024, First Republic's deposit base had shrunk so much that the bank could no longer operate profitably.

What to do if you had money in one of these banks

If your deposits were in SVB, Signature, or First Republic, they were automatically transferred to the acquiring bank (First-Citizens, Flagstone, or JPMorgan, respectively). You did not have to do anything. Your account number may have changed, and you may have received new debit cards and online banking credentials, but your money was never at risk.

Check your bank statements to confirm your deposits appear in the new bank's system. If you notice any discrepancies or missing funds, contact the new bank's customer service when ready. The FDIC also maintains a list of failed banks and the acquiring institutions on its website, so you can verify which bank took over your deposits.

If you had uninsured deposits (above $250,000) at any of these three banks, you should have received your full balance. If you did not, contact the FDIC's Division of Resolutions and Receiverships at 877-275-3342 or visit the FDIC website to file a claim.

How to protect your deposits at your current bank

Bank failures are rare. The FDIC has insured deposits since 1933, and the vast majority of banks operate safely for decades without incident. However, you can take steps to may support your deposits are fully protected.

First, keep your balance under $250,000 per account type at any single bank. If you have more than $250,000, spread it across multiple banks or use different account types (checking, savings, money market, retirement accounts) at the same bank, as each type is insured separately.

Second, monitor your bank's financial health. Banks publish quarterly financial statements that show their capital levels, loan quality, and deposit trends. If a bank's capital is declining or deposits are falling rapidly, that can be a warning sign. You can also check the FDIC's website for information about a bank's safety rating.

Third, use banks that are FDIC-insured. Most traditional banks are, but some online banks and credit unions are not. Verify your bank's FDIC status on the FDIC's website before opening an account.

Frequently Asked Questions

Did I lose money if I had deposits in SVB, Signature, or First Republic?

No. All three banks' deposits were protected by the FDIC. If your balance was under $250,000, it was insured. If it was above $250,000, the FDIC made you whole anyway at these three banks. Your money was transferred to another bank automatically.

How do I know which bank my deposits went to?

Check your bank statements or log into your online banking account. Your account should now show the acquiring bank's name. For SVB, deposits went to First-Citizens. For Signature, they went to Flagstone. For First Republic, they went to JPMorgan Chase. You can also call the FDIC at 877-275-3342 to confirm.

What if I had more than $250,000 at one of these banks?

At SVB, Signature, and First Republic, you received your full balance, even if it exceeded $250,000. This was an exception made to prevent a broader banking crisis. At other banks, uninsured deposits above $250,000 may not be fully protected in a failure.

Can I get my money back if the acquiring bank is not convenient for me?

Yes. Your deposits are yours to move. You can transfer your balance to any other FDIC-insured bank at any time. There is no penalty for moving your money, and the transfer usually takes one to three business days.

Are there other banks that might fail soon?

Bank failures are unpredictable, but they are rare. The FDIC monitors all banks for signs of trouble. If you are concerned about a specific bank, you can check its financial health on the FDIC website or speak with a financial advisor. Keeping your balance under $250,000 per account type at any single bank is the safest approach.