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What Is FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency in the US created by the Congress after the Great Depression to protect the consumers and maintain the public's confidence in the nation’s financial system. 

How Much Money In The Bank Is FDIC-Insured?

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. If you open a deposit account in an FDIC-insured bank, you are automatically covered. 

What are the types of deposit products insured by the FDIC?


  • Checking accounts

  • Savings accounts

  • Money market deposit accounts

  • Certificates of deposit (CD)

  • Prepaid cards (assuming certain FDIC requirements are met)

https://www.fdic.gov/resources/deposit-insurance/financial-products-insured



Can you get above the FDIC Insured $250,000 from SV Bank?

FDIC said the uninsured depositors will get receivership certificates for their balances. 

Receivership certificate is a proof of the remaining uninsured deposit that the depositor holds in the bank. This certificate will help to get the remaining deposit post the bank’s asset liquidation. 

Some Important Points On How The Coming Week Will Be 

Regarding The $ 250K Insurance


  • By 13th March 2023, i.e. Monday, FDIC insured deposits will be available for withdrawal from the SVB interface. 

  • All your corporate entities shall have a coverage of $250 K each. 


Regarding The Remaining Deposits In SVB 

  • The remaining uninsured deposits shall get receivership certificates for their balances.

Receivership certificate is a proof of the remaining uninsured deposit that the depositor holds in the bank. This certificate will help to get the remaining deposit post the bank’s asset liquidation 

  • The payout will be in dividends up to the total value of the certificates, as FDIC liquidates the assets of SVB as the receiver. 

  • In the coming week, an advanced dividend will be most likely paid by the FDIC. The advanced dividend amount is still undisclosed. This is over and above the $250,000 insured amount. 

  • FDIC shall be establishing a cutoff time for the transactions that were requested before the bank shut down. Cutoff time is basically the time decided by the FDIC until which the initiated transactions shall be processed and won’t be a part of the receivership certificate. The transactions initiated outside the cutoff time shall be caught up in the receivership. 

  • At the time of IndyMac collapse in 2008, about 50% was proposed to be paid as an advanced dividend. As per news article it is still to be believed that the asset quality of the investment made by SVB is better and as per experts there can be a haircut possibility of 15-20%. It remains to be seen how fast the takeover / liquidation process is done.  

  • All these activities can be influenced in the case of any other bank buying SVB over the weekend.