Silicon Valley Bank is no longer operating as an independent bank

Silicon Valley Bank (SVB) failed on March 10, 2023, after a run on deposits left it unable to meet withdrawal requests. The bank was closed by California regulators and taken over by the Federal Deposit Insurance Corporation (FDIC). SVB's assets and most of its deposits were sold to First-Citizens BancShares on March 26, 2023, which means your account did not disappear—it transferred to a new bank.

If you had money in SVB when it closed, your funds were protected up to the FDIC insurance limit of $250,000 per depositor, per bank. Deposits above that amount went through a claims process. First-Citizens took over the operating accounts, so if your balance was under $250,000, you could access your money through First-Citizens almost immediately after the transfer.

The failure happened because SVB had invested heavily in long-term bonds that lost value when interest rates rose. When depositors began withdrawing money en masse, the bank did not have enough liquid cash to cover the outflows. This was a bank failure, not a scam or hack—your money was not stolen, but the bank ran out of cash to give it back.

Key Takeaways

  • Silicon Valley Bank closed on March 10, 2023, and your account was transferred to First-Citizens BancShares on March 26, 2023.
  • Deposits under $250,000 were fully protected by FDIC insurance and accessible through First-Citizens immediately after the transfer.
  • Deposits over $250,000 required filing a claim with the FDIC to recover the uninsured portion, with a deadline that has now passed.
  • You can still access your SVB account through First-Citizens online banking, mobile app, or by visiting a First-Citizens branch.

What happened to deposits over $250,000

If you had more than $250,000 in SVB, the amount above $250,000 was not automatically covered by FDIC insurance. However, the FDIC set up a claims process for uninsured deposits. Depositors could file a claim to recover part or all of the uninsured amount, depending on how much the FDIC recovered from selling SVB's remaining assets.

The FDIC's claims process required you to submit proof of your deposit and file by a specific deadline. That deadline has now passed, so if you had uninsured deposits and did not file a claim, you should contact the FDIC directly to understand your options. The FDIC's SVB claims page has information about the status of uninsured deposit recoveries.

In practice, the FDIC recovered enough from SVB's asset sales that uninsured depositors received a significant recovery—in some cases close to 100 percent of their uninsured balances. This was unusual; most bank failures result in partial or no recovery for uninsured deposits. The outcome depended on the timing and terms of the First-Citizens acquisition.

How to access your account now

Your SVB account is now a First-Citizens account. You can log in using your existing SVB online banking credentials on First-Citizens' website or mobile app. If you have a debit card issued by SVB, it continues to work as a First-Citizens card. You can also visit any First-Citizens branch to withdraw cash, make deposits, or speak with a banker about your account.

If you cannot log in or your credentials do not work, contact First-Citizens customer service at 1-800-922-9999. They can help you reset your password or verify your identity. Have your account number and Social Security number ready.

Checks written on your SVB account remain valid and will clear through First-Citizens. Automatic payments and direct deposits set up with your SVB account number continue to work without interruption.

FDIC insurance and what it covered

The FDIC insures deposits up to $250,000 per depositor, per bank. This means if you had $250,000 or less in your SVB account, that entire amount was insured and protected when the bank failed. If you had multiple accounts at SVB—for example, a personal checking account and a business account—each account was insured separately up to $250,000.

Certain account types, such as retirement accounts (IRAs) and trust accounts, have separate insurance coverage limits. An IRA at SVB was insured up to $250,000 separately from a regular checking account. If you held both types of accounts, each was covered independently.

The FDIC's insurance is automatic; you do not need to file a claim or take any action to receive it. When SVB failed, the FDIC immediately honored all insured deposits, which is why First-Citizens was able to transfer accounts without delay.

Why SVB failed and what changed afterward

SVB failed because it held a large portfolio of long-term bonds that declined in value when the Federal Reserve raised interest rates in 2022 and 2023. As rates climbed, the bonds SVB owned became worth less on the open market. When depositors began withdrawing money in March 2023—partly due to concerns about tech industry layoffs and partly due to general economic uncertainty—SVB could not sell its bonds without realizing massive losses.

The bank did not have enough cash on hand to meet the withdrawal requests, so it failed. This was not fraud or mismanagement in the criminal sense; it was a mismatch between the bank's assets and its liabilities during a period of rapid interest rate change.

After SVB's failure, regulators and Congress examined how banks manage interest rate risk. Some changes to banking rules have been proposed or implemented, but the basic structure of FDIC insurance and bank regulation remains the same. The takeaway for depositors is that FDIC insurance protects you up to $250,000, and if you have more than that, you should consider spreading deposits across multiple banks or using accounts with separate insurance coverage.

What to do if you had uninsured deposits

If you had more than $250,000 in SVB and did not file a claim with the FDIC during the claims period, contact the FDIC's Customer Assistance Group at 1-877-ASK-FDIC (1-877-275-3342) or visit the FDIC's SVB information page. Explain your situation and ask about recovery options. The FDIC can tell you whether your claim was filed, what amount you may recover, and when payment will be issued.

Keep records of your SVB account statements showing your balance on March 10, 2023. The FDIC may ask for proof of your deposit amount. If you have questions about how much of your deposit was insured, the FDIC can calculate that for you based on your account type and balance.

If you received a partial recovery and want to understand why, the FDIC can explain how the recovery was calculated and what percentage of uninsured deposits were paid out. This information is public and available on the FDIC's website.

Moving your account if you want to switch banks

You are not required to stay with First-Citizens. If you want to move your account to a different bank, you can do so at any time. First-Citizens will not charge you a fee to close your account or transfer your funds. You can open an account at another bank and request that First-Citizens send your balance via wire transfer or ACH transfer.

Before you move, consider whether you want to keep your account at First-Citizens. First-Citizens is a stable, FDIC-insured bank, and your account is just as protected there as it would be at any other bank. The transfer from SVB to First-Citizens was seamless for most depositors, and there is no reason to move unless you prefer a different bank for other reasons.

If you do move, remember to update any automatic payments, direct deposits, or other recurring transactions that use your account number. You will receive a new account number at your new bank, so you will need to provide that information to your employer, creditors, or other parties who send or receive money from your account.

Frequently Asked Questions

Can I still use my SVB debit card?

Yes. Your SVB debit card is now a First-Citizens card and works exactly as it did before. You can use it at ATMs, stores, and online. If your card expires or is damaged, First-Citizens will issue a replacement. Contact First-Citizens customer service to request a new card if needed.

What if I had a business account at SVB?

Business accounts are treated the same way as personal accounts. Deposits up to $250,000 were insured. If your business account had more than $250,000, the uninsured portion went through the FDIC claims process. Your account transferred to First-Citizens and operates the same way it did at SVB.

Do I need to do anything to keep my account active?

No. Your account is automatically active at First-Citizens. You do not need to sign any new paperwork or take any action. You can start using your account immediately by logging in online, visiting a branch, or using your debit card.

What if I had a loan with SVB?

Loans held by SVB were also transferred to First-Citizens. Your loan terms, interest rate, and payment schedule remain the same. You can make payments through First-Citizens online banking or by phone. Contact First-Citizens if you have questions about your loan.

Will my checks still clear?

Yes. Checks written on your SVB account will clear through First-Citizens without any problem. The routing number on your checks may change over time as First-Citizens integrates SVB's systems, but checks written before the transfer will still be honored.