Key takeaways It is common for at least a few banks to fail in a year. One bank has failed in 2026, to date, while 2025 and 2024 each saw two bank failures. Storing your money in an FDIC-insured bank will help protect your funds. Chicago-based Metropolitan Capital Bank & Trust closed its doors on Jan. 30, 2026. The bank had total assets of $261.1 million and total deposits of $212.1 million as of last September, according to the Federal Deposit Insurance Corp. (FDIC). Deposits in the bank (excludi ...

Group 1 - The collapse of Silicon Valley Bank in 2023 has led financial leaders to reconsider their banking strategies, focusing on diversifying their banking relationships to mitigate risks associated with potential bank failures [3][5] - A significant portion of companies with balances over $250,000 are diversifying their accounts or considering strategies to maximize FDIC insurance coverage, with mid-sized financial institutions being viewed as offering attractive rates [4][5] - Despite efforts to diversify, 86% of surveyed companies still hold balances exceeding the $250,000 FDIC insurance limit, highlighting a need for better understanding of cash safety and risk management [5][6] Group 2 - Long-term bank deposit safety remains a top concern for finance executives, with 74% ranking it among their top three priorities, surpassing concerns about inflation (70%) and cyber risk (65%) [6] - The survey indicates that many businesses could only operate for less than three months if their primary bank failed, revealing a disconnect between perceived cash safety and actual protection [6] - CFOs are urged to prioritize understanding protection limits and diversifying risk to enhance cash confidence, treating access to deposits as a core business priority [6]

Core Insights - The discussion highlights the appeal of FDIC insurance among small depositors, emphasizing the importance of digital engagement for banks to retain customers [1] - The conversation also points to the ongoing trend of mergers and acquisitions (M&A) in the banking sector, driven by the need for digital capabilities and the integration of AI technologies [1] Company Insights - North Shore Trust & Savings Bank, now NSTS Bancorp, is identified as a small bank with a high equity to asset ratio of 29 and trades at 70% of tangible book value, making it an attractive investment opportunity [2][3] - RBB Bancorp, a Korean bank based in Los Angeles, is trading at 77% of book value, offering a 3% dividend and maintaining a 12 equity to asset ratio, indicating potential value for investors [4]

Core Insights - Savings accounts are common financial tools that allow individuals to store money securely while earning interest, represented as the annual percentage yield (APY) [2] - Interest earned in savings accounts is considered taxable income, and banks issue a Form 1099-INT for interest earnings of $10 or more [3] - The amount of interest earned on a savings account depends on the interest rate, compounding frequency, and additional contributions [4][5] - Experts recommend keeping three to six months' worth of essential expenses in savings, but the amount can vary based on individual financial situations [6][7] - Savings accounts allow for withdrawals, but banks may impose limits and fees on excessive transactions [8] - The best savings account varies by individual needs, with online banks and credit unions often providing competitive options [9][10] - Multiple savings accounts can help track different savings goals and maximize interest earnings, but they also require more management [11][12] - The 50/20/30 rule is a budgeting strategy that allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings [13] - Savings accounts have routing numbers that identify the bank, and they are typically FDIC-insured up to $250,000 per depositor [15][16]

Interest Rate and APY - APY is based on Level Up tier, interest is paid in CRO monthly, and the value of CRO may change [1] - The APY was accurate as of September 2, 2025, and is subject to change [1] - Fees may reduce earnings on the account [1] Regulatory and Security - The platform is not a bank; banking services are provided by Green Dot Bank, Member FDIC [2] - USD Cash Earn Account funds are FDIC-insured up to $5 million through a cash sweeps program by Green Dot Bank and its partner network [2]

Regulatory Landscape - The GENIUS Act establishes a supervisory system for stablecoins mirroring that of national banks [1] - The Act mandates supervision of all US stablecoin issuers by either the FRB, FDIC, OCC, or a state banking agency [2] - Issuers must maintain reserves backing their coins on at least a 1:1 basis with high-quality, liquid assets and disclose reserve composition monthly [2] Market Impact - Enhanced supervision is expected to create a sense of safety in stablecoins, driving mass market adoption [3] - The lack of perceived safety, compared to traditional banks with FDIC insurance, has hindered stablecoin adoption [1]