LINCOLN, R.I. (WPRI) — When Silicon Valley Bank and Signature Bank collapsed earlier this month, many Americans became wary of the nation’s banking system.
But financial advisor Donna Sowa Allard tells 12 News there’s no need to panic.
That’s because the Federal Deposit Insurance Corporation (FDIC) has insured $250,000 in deposits per person and $500,000 for married couples.
“If everyone pulled out their money and put it under a mattress, that would cause a massive problem,” Sowa Allard said. “I don’t think people need to be concerned.”
Sowa Allard said those who are still worried about their money should consider which bank it’s being held in.
“I think it’s good to look at who you do banking with and look at how much money you have in each institution,” she explained.
Sowa Allard also suggested utilizing both savings and checking accounts, especially ones that are FDIC insured.
“I am personally not concerned,” she said. “But if you are, I would spread out deposits between banks.”
For business owners who have more than the insured amount, Sowa Allard said there are smaller banks that can offer additional protection.
“Some smaller banks do offer secondary insurance above FDIC insurance,” she said. “Ask your bank if they participate in that program.”
The Federal Reserve will meet Wednesday to determine whether interest rates will rise.
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