Hands down, the most important thing you can do to mitigate the risk of your bank going under is to ensure it's a member of the FDIC, says Marcy Schwab, vice president of retail banking at Sallie Mae, the student lending firm based in Newark, Del.
"Let's put it this way, when IndyMac failed (in 2008), the customers got their money back because it was insured," she says.
Chances are, most banks you encounter will be FDIC members, and they'll likely display that membership with FDIC seals throughout the bank. But to be safe, it's a good idea to check with the FDIC website.
As a general rule, each depositor is insured for up to $250,000 per bank. If you have more money to deposit, it's a good idea to diversify and find an additional bank.