What if your bank goes bankrupt?

The Federal Deposit Insurance Corporation (FDIC) insures money up to $100,000 in each account (you have up to $100,000 of your money insured at each bank you have an account with). Most banks in the United States are insured by the FDIC. Most credit unions are insured by National Credit Union Administration up to $100,000. Both of these insurance institutions were set up after the great depression to prevent bank runs (after the market crashed people panicked and tried to take all of their money out of their bank causing banks to go bankrupt and many people to lose all of their money they held in a bank).

Although I am not sure about credit unions, one thing I can tell you about your bank failing is:

1. Your money is safe in a bank up to $100,000. The FDIC insures that amount should your bank fail - plus $250,000 for retirement accounts that hold bank products like CD's.

That being said, your best strategy is to move your money into different banks. Although it is rare to have bank's fail, time's are definitely in favor of being safe.