You are not considered a DEPOSITOR, you are a CREDITOR. The money in your account is considered A LOAN to the bank. If they go bankrupt and if FDIC fails, you lose your money.
READ MORE…IF THE BANKS ARE INSOLVENT

Will FDIC keep protecting bank failures?

The existence of the “no depositor loss unless absolutely unavoidable” practice is quite evident by contrasting the FDIC’s failed-bank resolutions before the IndyMac failure with its resolution practices since then.

Of the 127 banks and thrifts that failed from Jan. 1, 1993, to the last bank that failed before IndyMac was closed, just 39 of those failures were resolved through a P&A transaction.

For the other 88 resolutions, uninsured depositors suffered a loss because only insured deposits were paid off in full or another bank purchased or otherwise assumed just the insured deposits of the failed bank, leaving the uninsured deposits behind, in the failed bank’s receivership.

From the perspective of deposits, 71% of the total deposits of the 127 failures were in institutions where uninsured depositors suffered a loss, while 29% of the deposits were in institutions resolved through a P&A that fully protected uninsured depositors from any loss whatsoever.

The post-IndyMac resolution experience has been starkly different. Since IndyMac, there have been 522 failures, excluding Washington Mutual.  READ MORE….