Two banks fail but depositors are 100% covered even for excess over FDIC limits

The bad news is that two banks failed on Friday and were taken over by the FDIC. The good news is that the FDIC transferred 100% of depositors funds to the new banks, even for amounts over the FDIC coverage limits.

The banks:

• Meridian Bank, Eldred, Illinois

All depositors of Meridian Bank, including any with deposits in excess of the FDIC's insurance limits, will automatically become depositors of National Bank, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

• Main Street Bank, Northville, Michigan

All depositors of Main Street Bank, including any with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Monroe Bank & Trust, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

The bottom line here is that people really do not need to be afraid of their bank failing, especially if you are under the FDIC coverage limit, which is now $250,000.

-- Jack Krupansky