While last year there were just a few bank failures, the chairman of the Federal Deposit Insurance Corp (FDIC) is predicting that there will be more to come — regulators are estimating 100-200 bank failures over the next year or two. FDIC has insured deposits in banks since its creation during the Great Depression, and the FDIC maintains that not one penny of insured funds has been lost due to bank failure since 1934.
Since the FDIC would protect your money if your bank were to fold, the first thing you should look for in a bank is that its deposits are FDIC insured. You can check out the FDIC's website to see which banks carry its guarantee. Individual accounts are insured up to $100,000, joint accounts can be insured up to $200,000, and IRAs can be insured up to $250,000. According to the FDIC, "there is little or no interruption to the consumer" if your bank goes under.