Recession Looming? Here's What Financial Experts Say About Your Bank Deposits

J.P. Morgan just raised the odds of a U.S. recession by end of year to 35%, and job reports reveal 818,000 fewer positions added than expected. So should you panic-withdraw your savings? Not according to the pros.

The FDIC’s got your back. Banks remain the safest place for cash—FDIC insurance covers up to $250k per depositor, dollar-for-dollar. Since the FDIC started in 1934, zero depositors have lost insured funds. Even during the Great Depression when 9,000+ banks collapsed, this mechanism would’ve saved people from total loss.

Three moves to sleep better at night:

1. Go for yield — High-yield savings accounts, CDs, and money market accounts beat standard savings while staying FDIC-protected. Your cash actually grows instead of sitting idle.

2. Keep liquidity — Only 27% of households can cover 6+ months of expenses if income stops. Stash 3-6 months of essentials in easily accessible funds (Treasury bills, cash equivalents). This is critical during downturns.

3. Spread the wealth — Bank deposits over $250k? Diversify across multiple institutions to maximize FDIC coverage. Some also add gold or precious metals as a hedge—they typically hold value when equities tank.

Bottom line: Your bank deposits are safe. The smarter play is repositioning how you hold them to earn better returns and maintain liquidity when the economy gets choppy.