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Warning Signs that Your Bank May Fail

September 22, 2009 | Banking | No Comments

This year (2009) alone 94 federally insured banks have failed.  The Federal Deposit Insurance Corporation (FDIC) has identified 416 banks and thrifts that are currently in trouble.

The FDIC currently insures over 8,000 banks and thrifts in the United States.  The FDIC expects the list of banks in trouble to continue to grow this year.

So how do you know if your bank is at risk?  There are few tell tale signs that your bank maybe in trouble.  They include:

  • Recent employee layoffs or cutbacks
  • Eliminating dividends to shareholders
  • Not accepting loan applications
  • Generous offers to increase business with the bank
  • Offering high interest rates far above the current market rates


However, don’t panic if you have less that $250,000 with your bank if your suspect it maybe in trouble.  The FDIC currently insures deposits up to $250,000.  If you have over $250,000, you should immediately remove your money from that bank.

The FDIC doesn’t make public banks they consider in trouble, however, you can check your bank safety rating at

You can also look up your banks financials at companysearch.html and search for your bank to review their 10K, 10Q and 8K filings.

Finally, you can check the FDIC’s Electronic Deposit Insurance Estimator (EDIE) which is an interactive application that allows you to calculate the insurance coverage of your accounts at each FDIC-insured bank.

Related Article: Video: How the FDIC Takes Over a Failed Bank






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