The Silicon Valley Bank (SVB) collapse happened very suddenly last month, followed by regulators shutting down Signature Bank as well. Though the Federal Reserve and Treasury Department stepped in to guarantee all depositors’ funds, investors and savers may still feel some concern about the state of their banks and the potential for further issues. Most banks have better liquidity and risk controls than SVB and Signature Bank, which faced problems due to mismanagement of their assets, and the actions from the Federal Reserve have restored some confidence, putting the banking system on more solid ground. However, it is a constantly evolving environment, and there are some steps savers can take to help make sure their assets are protected in the case of any further troubles.

The Federal Deposit Insurance Corporation (FDIC) covers $250,000 in deposits, per depositor, per insured bank. This coverage means that your checking, savings, CDs, cashier’s checks, money orders, and some money market accounts are protected by the full faith and credit of the U.S. government up to $250,000. The FDIC has provided this insurance for 90 years to assure depositors that their funds would be available no matter what was happening in the financial world, or to their bank.

Credit union accounts are not covered by the FDIC, but federally chartered credit unions have similar coverage of deposits up to $250,000 by the National Credit Union Administration (NCUA), also a federal agency backed by the faith and credit of the U.S. government. (Some state-chartered credit unions may be privately insured and not covered by the NCUA; find out more here.)

Are your accounts covered? You can check at fdic.gov/resources/, where you’ll find a listing of ownership categories and applicable coverage amounts, such as the different coverage afforded to trusts and other legal entities. This will give you a sense of how much coverage you have and whether you have savings and deposits outside that coverage that may be at risk. If so, here are some steps you can take to set up additional protection:

• Use multiple institutions: Since deposits are insured per depositor per insured bank, consider opening accounts in multiple institutions and keep each account under the $250,000 threshold.
• Use a CMA: A Cash Management Account (CMA) functions like a traditional bank account but spreads your deposits across several different partner banks to provide additional protection.
• Invest your assets: If you are holding more than $250,000 in bank deposits that you are not using for expenses or business operations, consider putting those assets to work for you in your investment portfolio. Assets with a long time horizon, such as college or retirement savings, are likely to earn a higher return in a diversified investment portfolio than a cash deposit account.

Finally, remember that the practical impact of stress in the banking system may be a situation in which depositors temporarily do not have access to cash in the midst of a crisis. I often recommend to my clients to keep a month or two of cash in a safe at their home or business, as this can help mitigate the stress or anxiety you may feel, and it can provide coverage in the case of any short-term issues (and Amazon sells a variety of home safes for under $200).