What happens to my money if my bank closes down?
What happens to my money if my bank closes down? Does the name IndyMac make you cringe a little? If so, you’re not alone. After several bank failures already the same year, news broke in the summer of 2008 that IndyMac bank was having trouble. As a result, its customers became concerned about the fate of their funds. When they started lining up outside the bank in a desperate attempt to get their money back, the story struck a chord with other people, who started to worry about what would happen if their own bank failed. If you know how banks work, you know that when you fork over your paycheck, the money doesn’t just gather dust in a vault waiting for you to come back and get it. Banks aren’t babysitters for your funds — they take the money you deposit and try to make more money with it, which inevitably involves risk. But if all goes well, they only make smart risks. To make a profit, banks invest money and lend
