TYLER, Texas (KETK) — When you deposit your money you want to know it’s safe, but after the Silicon Valley Bank crashed, some East Texans aren’t sure if they can trust their bank.
“The banking system here in East Texas is functioning and will continue to function just perfectly,” said David Kaiser, Director of the Chadwick Family Banking Program at Stephen F. Austin State University.
Kaiser said there is no need to worry because you will always have access to your money.
“So the bank has on hand enough cash at all times to meet their normal depositor obligations,” said Kaiser.
He said that is safe because of the Federal Deposit Insurance Corporation or FDIC.
“You just need to understand that all bank deposits are insured up to $250,000 per depositor, per bank,” said Jay Oliver, financial advisor at Rose Point Capital Advisors.
Oliver said the question on some East Texan’s minds is, “What happens to your cash once it’s deposited?”
“The bank is required to keep some on reserve to have money on hand for withdrawals as needed,” said Oliver.
He said the other half is then invested or loaned out and customers don’t need to panic when they hear about banks crashing.
“The vast majority of people that are not involved directly with those banks that you have been hearing about in the news, the money is going to be there as it always has been,” said Oliver.
If you are still worried, both Kaiser and Oliver say there are some things you can do to ease your mind.
“Depositors should always make sure they are dealing with a bank that is insured by the FDIC,” said Kaiser.
You can also speak directly with your banker about your concerns.