# The recession is here, is your money safe in the bank?

Signals of a cooling U.S. economy are becoming increasingly strong: JP Morgan has raised the probability of a recession by the end of this year from 25% in mid-year to 35%, and the unemployment data has also been revised downward—81,800 job opportunities were undercounted between March 2023 and March 2024. This has caused many to panic: Is it still reliable to keep my savings in the bank?

**To be honest, your money is safe in the bank.** CFP analyst Taylor Kovar provides a clear answer: U.S. bank accounts are protected by the FDIC (Federal Deposit Insurance Corporation), with a maximum coverage of $250k per individual account. This protection mechanism has been in effect since 1934, and not a single penny of the insurance funds has been misused—this is official record.

Historical benchmark: During the Great Depression from 1930 to 1933, over 9,000 banks failed, and depositors lost $1.3 billion (equivalent to $27.4 billion today). This is why the government established the FDIC as a safeguard.

**But the key question arises:** What if your deposits exceed $250k? At this point, you need a diversification strategy—high-yield savings accounts, CDs, and money market accounts are all FDIC insured, and they offer much higher interest rates than regular accounts. Alternatively, you could simply spread your deposits across multiple banks, which would effectively double your protection limit.

Another tip: keep 6 months of emergency funds in liquid assets (cash or government bonds). CFPB data shows that only 27.1% of American households can last more than 6 months, which is too risky during an economic downturn.

**TL;DR:** Recession is not scary, with FDIC protection, but don't put all your eggs in one basket. Diversification + keeping an emergency fund = sleep soundly.