You work hard for your money and the last thing you need to worry about is whether or not your money is safe at the bank. But with the recent collapse of Silicon Valley Bank, followed by Signature Bank, many small business owners find themselves concerned. According to Forbes, there have been 565 bank closures in the US since 2000 – that’s over 25 per year. While that number might be alarming, there are several things you can do to make sure your money is safe. In this blog we’ll go over a few of those tips.
Make Sure Your Bank is FDIC Insured
The Federal Deposit Insurance Corporation (FDIC) is a US government agency that provides insurance to protect depositors’ money in the event of a bank failure. FDIC insurance covers deposits in banks and savings associations up to a certain amount, currently $250,000 per depositor, per insured bank. This means that if your bank fails, your deposits are protected up to the insurance limit, and you will not lose your money. It’s important to note that not all types of accounts are covered by FDIC insurance, so it’s essential to understand the limits and guidelines. Most reputable banks are FDIC-insured, so choosing an FDIC-insured bank is an important step in protecting your business’s funds. If you are unsure of the status of your bank, you can look it up on the FDIC website.
Choose a Reputable Bank
It’s important to choose a bank that is well-established and has a strong reputation for security and stability. Research your bank’s history and reviews before making a decision.
In addition to the FDIC insuring your bank deposits at your bank, take a proactive role and look for telltale signs that might indicate a problem. Signs of trouble might include closing of branches, reduction in workforce, increase of fees, to name a few. Also, be aware of any news that mentions the possibility of your bank being acquired or sold.
Keep Your Business and Personal Accounts Separate
In addition to ensuring your bank is stable, It’s also important to keep your personal finances separate from your business finances. This helps you avoid confusion and ensures that you are accurately tracking your business expenses and income.
Monitor Your Accounts Regularly
Cyber crime is here to stay. In 2021 alone, the Federal Trade Commission, FTC, reported more than 33,000 bank fraud cases. A reputable bank should be able to refund any stolen money if your business is a victim of a phishing scam or identity theft. Keep an eye on your accounts frequently to ensure there are no unauthorized transactions or unusual activity. This helps you detect any issues quickly and take action before they become major problems.
Keeping your money safe can be challenging at times but there are many online resources available to help you monitor your bank as well as your money. If you have any questions or concerns about your bank, please contact a professional.
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