Cash is not protected by the FDIC unless it is kept in a bank account. Safe deposit boxes at banks and other institutions provide protection for your cash, even if you deposit money in your own bank account. Even though the FDIC doesn’t protect cash kept in safe deposit boxes, the banking industry has voluntarily taken a number of steps to protect customers’ deposits. For example, the FDIC requires banks to keep a small percentage of their total deposit accounts in cash. This cash can be kept in a safe deposit box. If a bank were to lose a large amount of safe deposit box suppliers that was being kept in a safe deposit box, the FDIC would cover any resulting loss. You must read the terms of your bank’s contract before using a safe deposit box. You need to know what your options are in case of a problem. You must know if you are liable for any resulting losses. If you don’t know anything about this, you might want to check with your bank to find out.
You may have heard that the FDIC will take away your savings account if you fail to meet certain requirements. This is not true. The FDIC only takes away your checking account if you don’t make your regular payments on time. Your savings account will not be affected unless you violate your deposit agreement or make unauthorized withdrawals.