CORPUS CHRISTI, Texas — The collapse of the Silicon Valley Bank had many account holders everywhere concerned for their money.
Interest rates are continuously rising and some banks may face more risk than others — but for the average account holder, community and regional banks are safe.
"The failure of Silicon Valley Bank, a lot of people have questions, but that was something that was isolated to that specific bank. So it doesn’t affect the average consumer, it doesn’t affect the average customer," Bill Day, Vice President at Frost Bank said.
The Federal Deposit Insurance Corporation (FDIC) protects the community and regional banks and accounts under $250,000.
"Banks know that they need to be well capitalized they know they need to keep their balance sheets strong in case disruptions like this happen. Remember that deposits are endured by the FDIC, your deposits are safe," Day said.
We spoke to TAMUCC Professor of Economics Jim Lee and he told us that people are taking out their money because of their banks' exposure to high-tech companies. There are no banks like that in the Coastal Bend.
He said something similar is as close as Austin. He told us that people who have less than $250,000 in their accounts should not be worried.
"The entire banking industry is extremely safe and that’s an exception. We’re talking about Silicon Valley banks, signature bank, these banks are exceptions to the norm. A high-tech industry in California does not represent the rest of the country. Most banks are very safe and diversified so it’s nothing to worry about," Lee said.
To find out if your bank is FDIC insured, check for the logo on your bank entrance or on your check. If not, talk to your bank about other options or try to open a separate account.
