By Mark Kennan, eHow Contributor
When a bank fails, most of the money in the savings accounts will be recovered by the account holders as long as the bank was covered by Federal Deposit Insurance Corp. (FDIC) insurance.
Bank Credit Union
Bank Money Transfer
FDIC insurance is a government-run program that protects consumers' bank accounts including savings accounts, checking accounts, money market deposit accounts and certificates of deposit in case a bank collapsing.
In many cases, a failing bank gets bought buy another bank. If this occurs, your account will simply transfer to the acquiring bank.
In the event that a bank fails, the first $250,000 of your savings account will be reimbursed by the FDIC. The limit is set to return to $100,000 at the start of 2014.
According to Investopedia.com, you should receive your funds within a few days of the failed bank's closing.
No account holder has every lost funds insured by the FDIC since the FDIC was started in 1933.