From Yahoo Finance: 2025-03-29 10:02:00

In late 2024, there were talks of potentially dismantling the FDIC and transferring deposit insurance to the U.S. Treasury, per CNN. Project 2025 called for merging the FDIC with other regulators, leading to layoffs and rescinded job offers. Americans are concerned about their bank account safety amid these changes.

The FDIC insures deposits up to $250,000 per account category per bank, ensuring customer protection in case of bank failure. It examines financial institutions for safety, soundness, and compliance with laws, managing failed banks’ closure and enforcing consumer protection laws. Any elimination would pose risks to both customers and banks.

There is less than a 1% chance of the federal government reducing FDIC insurance, according to Frank. Strategies to maximize money safety include diversifying accounts, checking bank performance reports, and exploring alternative financial instruments. Moving money to different institutions can prevent exceeding FDIC or NCUSIF coverage limits.

Small banks and credit unions can provide personalized service, but larger banks offer diversified portfolios and more regulatory scrutiny. While credit unions might be safer if FDIC insurance was eliminated, it’s unlikely. Strengthening financial safety nets through various strategies and monitoring bank performance reports can enhance financial security.



Read more at Yahoo Finance: What To Do With Your Money If Trump Changes the FDIC