Bank safety ratings based upon financial institutions’ Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Sensitivity (CAMELS)

Your bank can fail and you can lose money, even with FDIC guarantee.

From 2001 to 2019, 557 banks had failed. In 2010 alone, 157 banks failed (Source: FDIC).

The chart below shows annual bank failures of recent years.

With FDIC guarantee in place, you may not lose the guaranteed amount, but you can still lose money indirectly and suffer the headache of cash flow interruptions:

1. Once a bank is closed, the accrual of interest ceases on all accounts. Even after your account is established with the acquiring bank, it is highly likely you’ll receive lower rates.

2. Any outstanding checks or payment requests presented after a bank failure will be returned unpaid. Any related headache of the interruption, like delayed payments, is your responsibility.

3. It might take a few days for you to get your insured portion back after a bank is closed.

4. You may lose money for the un-insured portion and it might take years to get paid.

5. Safe deposit box holders, business owners, trust, and fiduciary may all experience different disruptions.

Check the FDIC website for details.

Using different machine learning technologies, we predict the likelihood of bank failures through an intuitive rating system. Our ratings cover all the U.S. government guaranteed financial institutions.

Our purpose is to help you identify weak financial institutions so you can avoid the headache of dealing with bank closings in the future. The best way to get through the ordeal of a bank failure is to avoid problems in the first place.

Check your banks. Tell your family and friends to check theirs. If their banks fail down the road, you are doing them a big favor now.