How safe is your church’s money? What you need to know about bank failures

March 24, 2023

The Silicon Valley Bank (SVB) recently collapsed, making it the second largest banking failure in U.S. history. Since then, other banks like Signature Bank and Credit Suisse have closed, causing speculation that we may be facing a banking crisis.

This news has unsettled many pastors and church leaders, causing them to wonder, “Are our church finances safe?” and “What can we do to avoid losing money if our bank fails?” After all, an important part of being good stewards of a church is ensuring the safety, integrity, and management of its assets. 

In order to protect your church’s bank accounts from potential bank failures or closures, here are three proactive steps you can take today. 

3 ways to protect your church’s finances against bank failures

1. Stay within deposit insurance limits

The best way to ensure that your church’s deposits are protected by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insurance is by keeping deposits within the insurance limits. 

Currently, both the FDIC and the NCUA insure up to $250,000 per depositor at each bank or credit union. As long as your church’s accounts stay under those limits, your funds will be protected.

2. Expand your church’s banking relationships

Instead of keeping all your funds in one bank, spread your church’s funds across multiple banks or financial institutions. This is especially important if your church has accounts with more than $250,000. 

Before using another bank, check out rating agencies like Moody's and Standard & Poor's that provide public ratings on banks' creditworthiness. This can help your church make informed decisions about potential new banking relationships.

Having accounts with various healthy banks can help reduce the impact of any single bank failure on your overall financial situation.

3. Diversify your investments

Diversifying your church’s investments is an effective way to protect against a bank failure. Rather than relying on one bank for all of your deposits, distribute your funds across multiple financial institutions. 

There are also many investments that offer potential returns for your church. For example, many churches have found that investing in property, such as a church building, can offer many benefits, such as:

  • Full control over the property
  • More stability than many stocks
  • Growing equity (long-term profit)
  • Potential lease or rental opportunities (short-term cash flow)

Another option could be investing into a certificate of deposit (CD). The FDIC and NCUA insure CDs up to $250,000 per depositor, per bank. 

When done wisely, these kinds of investments will not only help protect against the risk of bank failure, but they may also provide much needed returns on your investment.

(Note: The content on this page is for informational purposes only and should not be construed as as tax, investment, financial, or other legal advice.)

More financial tools & resources for your church

By taking the above steps, you can minimize your church’s risk of losing their deposits in the event of a bank failure or closure. It’s also wise to be prepared to take action if you become aware of any potential issues with your banks.

One tool that is particularly effective at saving churches money is Subsplash Giving. Unlike the online giving platforms that charge high transaction rates, monthly fees, or even hidden charges, only Subsplash Giving offers GrowCurve™ that automatically lowers your processing rates with no monthly fees at all. 

To find out how your church can quickly and easily start using Subsplash Giving,[.blog-contact-cta] contact us today [.blog-contact-cta]or call 469-564-3922. 

Here are some more free financial resources that we hope you may find helpful:




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