What happens to your money if your bank fails, plus expert tips on protecting your money

Recent bank failures have shed light on the fragility of the banking sector across national and regional banks—with many consumers and investors alike questioning just how “safe” their money is.What is a bank failure?According to the FDIC, a bank failure is defined as the closing of a bank by a federal or state banking regulatory agency. This typically happens when a bank is unable to meet its obligations to depositors and others.In the case of SVB, the culprit was a bank run. That’s when depositors rush to withdraw all of their funds all at once amid fears that the bank may fail. As more customers withdraw their money, it increases the likelihood that the bank will default and run out of cash.There was a sharp rise in bank failures during the 2007 to 2008 financial crisis, but the banking system hasn’t seen failures in such high numbers since then.How safe is your money?In the event of a bank failure, the Federal Deposit Insurance Corporation (FDIC) steps in to offer insurance coverag...