Is your money at risk?!
This is a rising question in these days and times. Your bank strength rating is important to know because banks have been closing down left and right!
BIG TIPs
Make sure your funds are FDIC-Insured! - Don't place you money in any bank/financial institution where it is not FDIC-Insured (backed by the Federal Deposit Insurance Corporation). If you do you are just playing financial Russian-Roulette -- In other words you could be treading down the creek to financial suicide! If your bank closes down and you have no insurance on your funds stored there, then your money could be gone bye-bye for good. Be sure to review your bank statements, and/or check with your bank to insure that your funds are in fact FDIC-Insured, and for what amount (FDIC-Insurance typically covers up to $100,000).
Choose a well established bank - If you can qualify, it's always best to go with go with a well established banking institution with firm widespread presence - as a apposed to a smaller less established operation. This is another precautionary step to minimize the probability of your financial institution failing. Also larger banks are likely to be FDIC-Insured and have better FDIC bank ratings as well as a better overall bank strength rating.
BIG TIPs
Recommended Reading - IndyMac Bank Failure Revisited recounts shocking details behind one of the largest bank closings in U.S. History. It contains a failed bank list and helpful information to determine and minimize your financial risk -- as well as action steps to take if you have already fallen victim of a failed banking institution
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Bank Strength Rating Tool: How safe & sound is your bank?
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