Originally published March 2023. Updated June 2026.
If the banking news cycle has you wondering, "Wait, is my money actually protected?" you are not alone. Back in March 2023, the collapse of Silicon Valley Bank and Signature Bank had a lot of people asking us that exact question. The short answer then was: yes, most everyday savers were well protected. That is still true today, and there are a few updates worth knowing about.
Here is a plain-language breakdown of the three main programs that protect your money.
FDIC: Your Cash at the Bank
The FDIC insures cash deposits at member banks, up to $250,000 per depositor, per ownership category, per bank. That limit has not changed since 2010, but there is an important update if you have a trust.
As of April 1, 2024, the FDIC updated its rules for trust accounts. Coverage is now capped at $1,250,000 per trust owner, per bank, regardless of how many beneficiaries are named. This is a simplification of the old rules, but it does mean that very large trust deposits need a closer look.
On a bigger scale, there is currently a bipartisan conversation in Washington about raising the standard FDIC limit well above $250,000, particularly for business accounts. No change has passed yet, but it is a development worth watching.
If you want to run your own numbers, the FDIC's EDIE calculator is a great tool.
SIPC: Your Investment Accounts
The SIPC protects securities in brokerage accounts, things like stocks, mutual funds, and ETFs, if a brokerage firm fails. This is not protection against market losses. It is protection against firm failure.
For our Planning for Good clients, this matters directly. All of your advisory accounts are held in custody through a division of Fidelity, which is an SIPC member. You will see the Cambridge SIPC disclosure at the bottom of our website.
For those of you with accounts at AssetMark, you can find more details here: How AssetMark Trust Protects Client Assets.
NOLHGA: Your Insurance and Annuities
If you own annuities or life insurance products, those are not covered by FDIC or SIPC. Instead, they are backed by each state's insurance guaranty association. NOLHGA is the national organization that coordinates all 50 states' programs. Coverage limits vary by state and product type, so if you have questions about a specific policy, we are happy to dig in with you.
The Bigger Picture
The 2023 bank failures were unsettling, but they were concentrated in a very specific corner of the financial world. Most everyday families and consumers were never at real risk. That said, moments like that are a good reminder to do a quick financial fire drill.
Ask yourself:
• Do I know where my cash is held, and is it within FDIC limits?
• Are my investment accounts at SIPC-member firms?
• Are my insurance and annuity products with licensed, state-regulated carriers?
• Are my beneficiary designations current?
If you are not sure about any of these, that is exactly what we are here for.
Questions? Let's Talk.
If something in this post prompts a question about your own accounts, do not sit with it. Reach out by phone, email, or schedule a review meeting at your convenience.
Office: 877-568-7526
Email: team@planningforgood.co