How to Safely Store Deposits If You Have More Than $250,000

The collapse of Silicon Valley Bank, and fear that the pain is spreading to other financial institutions, is raising an uncomfortable question: Is it safe to leave a lot of money in a single bank?

The answer, at least according to financial advisers, is generally yes. Thanks to banking legislation dating back to 1933, the Federal Deposit Insurance Corp. covers up to $250,000 per depositor in qualified accounts at insured banks.

Crucially for savers, US authorities also created a new bank backstop that the Federal Reserve said is big enough to protect the entire nation’s deposits, including those above $250,000 ...