- Banks still fail — 6 U.S. banks failed in 2026 through October, after 2 in 2025.
- Insured deposits are usually available within one to two business days.
- Uninsured deposits become a claim against the failed bank and may not be fully recovered.
- Keeping each deposit within insured limits at multiple banks reduces exposure to any single failure.
Bank failures over 50 years
More than 3,500 U.S. banks and savings institutions failed or required FDIC assistance from 1976 to 2026 (3,595 per FDIC BankFind data), most during the Savings and Loan Crisis of the 1980s–early 1990s and the Great Financial Crisis of 2008–2013, when more than 480 FDIC-insured banks failed. A failure does not automatically mean depositors lose money — FDIC insurance protects eligible deposits up to the limit.
Why banks fail
Banks typically fail when losses on loans or securities, rapid deposit outflows, or poor risk management leave them unable to meet obligations. The 2023 collapse of Silicon Valley Bank showed how quickly uninsured depositors can withdraw funds — and how concentrated deposits magnify risk.
What the FDIC does
When a bank fails, its chartering regulator closes it and appoints the FDIC as receiver. The FDIC usually arranges for another bank to assume the deposits or pays insured depositors directly. Insured funds are typically available quickly, often within one to two business days.
What happens to uninsured money
Amounts above the insurance limit are not paid immediately. Uninsured depositors receive a receivership certificate for their claim and may recover some, all or none of it over time as the FDIC sells the failed bank’s assets. Access to those funds can take months or longer, which can disrupt payroll, vendors and operations.
Recent failures
Six FDIC-insured banks failed in 2026 through October 25 — Metropolitan Capital Bank & Trust, Community Bank and Trust – West Georgia, Kentland Federal Savings and Loan, Small Business Bank, Tioga-Franklin Savings Bank and Nano Banc — after two in 2025 (Pulaski Savings Bank and The Santa Anna National Bank). See Ampersand’s bank failure tracker for the full list since 2023.
How to protect business cash
Know how much of your cash is uninsured, monitor your bank’s financial health, and avoid concentrating large balances at one institution. Ampersand places deposits across 300+ insured institutions — each deposit kept within its insured limit — and monitors partner institutions on an ongoing basis.
Frequently asked
Insured deposits are typically available within one to two business days after a failure.
Related reading
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Ampersand, Inc. is not a bank or depository institution. Ampersand acts as administrator in placing deposits at FDIC- or NCUA-insured banks or credit unions; deposit insurance is provided by those institutions, subject to standard limits, aggregation rules, and pass-through requirements. ‡ Program rates have averaged 5–9x the FDIC national average savings rate, as of 10/15/2026; averages are not a guarantee of any client’s rate. § CDs are issued by participating insured institutions; “most competitive” compares per-bank CD rates with publicly available national CD rate data as of 09/19/2026. A placement fee applies to CDs and is charged at maturity, subject to a signed agreement with Ampersand; see your agreement for fee details. Rates vary and are not guaranteed. This guide is general information, not legal, tax or investment advice. Full disclosures →