**Bank Safe During Recession? Here's What The Data Says**

J.P. Morgan just raised recession odds to 35% (was 25% mid-year), and the jobs report got a scary revision: 818k fewer positions added than thought. So naturally everyone's asking—should I yank my cash out of the bank?

Short answer: No. FDIC insurance covers up to $250k per account, and since 1934, zero depositors lost insured funds. Period.

But here's the context: During the Great Depression (1930-1933), over 9,000 U.S. banks failed and depositors lost $1.3B ($27.4B in today's money). Banks typically collapse from panic withdrawals, bad loans, or mismatched assets vs. liabilities.

That's literally why the FDIC exists—to prevent 2023-style chaos.

**If you're paranoid:**
- Spread cash across multiple banks (maximizes FDIC coverage)
- Park money in high-yield savings/CDs (better rates, same protection)
- Keep 6 months expenses liquid (only 27% of households can do this)
- Consider gold as a hedge (holds value in downturns)

Bottom line: Your bank account is safer than your mattress. The real play is diversifying where you store it and making sure your cash actually works for you instead of just sitting there.