When a financial institution is shuttered by either state or federal regulators, it’s typically because insolvency has been declared. At that turning point, the Federal Deposit Insurance Corporation (FDIC) swoops in to safeguard insured deposits held by member banks. Being part of the FDIC family means your bank’s deposits enjoy this protective shield, no matter the institution’s scale.
Since the FDIC’s inception in 1933, the U.S. has witnessed thousands of bank shutdowns. Luckily, colossal bank collapses remain rare beasts. Yet, the 2023 calendar shook things up with the downfall of three heavyweight players: Silicon Valley Bank, Signature Bank, and First Republic Bank, rattling the financial sector to its core.
Taking Stock: How Do These Failures Measure Up?
Curious how these recent collapses compare with historical giants? Or wondering how to shield your hard-earned cash from sleepless nights tied to bank woes? Let’s dive into the eight most significant bank failures and explore how you can fortify your finances against potential bank breakdowns.
A Shockwave in Modern Banking
March 2023 blindsided the financial realm when Silicon Valley Bank (SVB)—a major financier for Silicon Valley startups—crumbled, propelling its parent, SVB Financial Group, into Chapter 11 bankruptcy proceedings. Shortly after, Signature Bank and First Republic Bank followed suit. Earlier that year, SVB ranked as the 16th largest bank nationwide, making it the biggest U.S. bank to implode since the 2008 global financial meltdown.
To grasp the intricacies behind these failures and the takeaways for consumers, a deeper analysis uncovers valuable insights into how these collapses unfolded.
The Eight Biggest Bank Failures on Record
| Washington Mutual Bank (WAMU) | September 25, 2008 | $307 billion† |
| First Republic Bank | May 1, 2023 | $212.6 billion |
| Silicon Valley Bank | March 10, 2023 | $209.0 billion |
| Signature Bank | March 12, 2023 | $110.4 billion |
| Continental Illinois National Bank and Trust Co. | May 17, 1984 | $41.4 billion |
| First Republic Bank, Dallas | July 29, 1988 | $32.5 billion |
| IndyMac Bank, F.S.B. | July 11, 2008 | $32.0 billion |
| Colonial Bank | August 14, 2009 | $25 billion† |
Note: Only outright failures are listed, excluding banks that received bailout assistance. *Assets are measured close to failure dates. †Rounded to nearest billion. Data sourced from the FDIC, Federal Reserve, and Federal Reserve Bank of St. Louis.
Historical Turbulence: Bank Failures Over the Decades
The Great Depression’s dark era (1930-1933) saw approximately 9,000 banks vanish, erasing about $7 billion of depositors’ funds, per FDIC records. This widespread calamity paved the way for the Banking Act of 1933—better known as the Glass-Steagall Act—signed by President Franklin D. Roosevelt, which birthed the FDIC to restore trust in the banking system.
Fast-forward to contemporary times, bank collapses have dwindled but still punctuate the financial landscape. Between 2001 and today, around 570 banks have folded according to FDIC tallies—with a staggering majority (over 500) crumbling between 2007 and 2014 during the global financial crisis.
Recent Smaller-Scale Failures Since First Republic’s Demise (2023–Present):
| July 28, 2023 | Heartland Tri-State Bank | $139 million |
| November 3, 2023 | Citizens Bank | $66 million |
| April 26, 2024 | Republic First Bank (operating as Republic Bank) | $6 billion† |
| October 18, 2024 | The First National Bank of Lindsay | $107.8 million |
| January 17, 2025 | Pulaski Savings Bank | $49.5 million |
| June 27, 2025 | The Santa Anna National Bank | $63.8 million |
†Rounded to nearest billion. Source: FDIC.
Guarding Your Money: Staying Ahead of Bank Failures
Given that bank collapses remain a sporadic but genuine threat, safeguarding your funds means banking with institutions insured by the FDIC—or if you’re a credit union member, by the National Credit Union Administration (NCUA). Knowing the ins and outs of deposit insurance, including which account types qualify for coverage, is critical to keeping your money out of harm’s way.
Regardless of your bank’s size, keeping all your deposits within FDIC insurance limits is a fundamental shield. While the odds of a bank failure might feel remote, it’s a risk that carries no reward—and no guarantee.
“No matter how vast your bank’s footprint, ensuring your deposits are fully covered by the FDIC is vital. Though chances of a collapse might seem slim, avoiding this hazard is a smart move without compensation.”
— Greg McBride, CFA, Chief Financial Analyst at Bankrate
The FDIC, backed by the U.S. government, vouches for the safety of your deposited funds up to $250,000 per depositor, per insured bank, across various ownership categories.
Banking With Confidence
Whether you’re embarking on opening a fresh bank account or tucking away funds in a high-yield savings vehicle for a milestone occasion, Bankrate offers timely, in-depth listings of top-notch deposit accounts. Our curated selection spans banks and credit unions nationwide—all federally insured, giving you peace of mind.
Size doesn’t dictate safety: even a single-branch bank nestled in a rural corner is FDIC-backed if it’s an official member, meaning your dollars remain shielded if it ever stumbles.
Remember, credit unions aren’t immune to failure either. Members should confirm their institution is NCUA-insured. The NCUA administers the National Credit Union Share Insurance Fund (NCUSIF), providing government-backed assurance that deposits held at credit unions are protected with full faith and credit of the U.S. government.