SVB Market Perspective

The Effects of Recent Banking Events – a 25 Financial Perspective

We wanted to pass along this insightful article from Vanguard related to the recent news with SVB and Signature Bank. While our confidence in the banking system remains high, it is a good time to review your bank accounts and make sure all of your cash is FDIC insured. Standard FDIC coverage limits are up to $250,000 per owner, per ownership category. For example, a married couple holding all their cash in a joint account would be covered up to $500,000. Please visit the FDIC Website for a full breakdown. It is generally wise to keep cash in excess of these amounts at a different FDIC insured bank so that all cash is federally insured.

In your brokerage accounts, 25 Financial uses an FDIC insured cash sweep program for our investors’ cash.

In addition to the below article, it may benefit you to read our most recent article from the 25 Financial Blog regarding diversification related to market losses.