On Friday, the Federal Deposit Insurance Corp. announced that financial regulators have closed Silicon Valley Bank, and taken control of its deposits as well.

This news marks the biggest U.S. bank failure ever since the global financial crisis that happened over a decade ago. 

The Silicon Valley Bank collapse – who’s a crucial player in the venture capital community – now leaves a series of wealthy entrepreneurs and tech companies unsure of what comes next, and most importantly, what will happen to their funds. 

In a press release from regulators, it states that the California Department of Financial Protection and Innovation is responsible for closing Silicon Valley Bank. It also says that it named FDIC as the receiver. 

According to the press release, insured SVB deposits are now held at the Deposit Insurance National Bank of Santa Clara, which was created by the FDIC for this purpose. 

In the announcement, the FDIC stated that all depositors will gain access to their funds on Monday morning. It also says that all Silicon Valley Bank branches will reopen around the same time – but under control of regulators. 

The press release also says that checks belonging to SVB will continue to clear.

By law, FDIC’s insurance covers up to $250,000 per customer, for every account ownership. According to the FDIC, uninsured customers will receive certificates for their bank balances. 

Uninsured depositors will also receive an advance dividend starting next week, paid by the regulator. Additional dividends may happen as they sell Silicon Valley Bank’s assets. 

However, what remains unclear is what will happen to depositors with more than $250,000 deposited into their accounts. 

Whether or not they will get their funds back depends on the amount the regulator gets with SVB’s assets sale, or if another financial institution decides to take ownership of those assets.

Rising concerns in the tech community revolve mainly on the fact that, until these events unfold, there might be issues making payroll. 

As of last December, Silicon Valley Bank had close to $209 billion in assets and over $175 billion in deposits. However, the FDIC says it’s still unclear what percentage of those deposits were above the $250,000 coverage. 

According to financial experts, the last bank failure of this magnitude in the U.S. happened in 2008 with Washington Mutual. At the time, WM had close to $307 billion in assets. 

Do you want to close your bank account but don’t know where to start? Maybe you’re tired of paying unnecessary fees and would rather take your money elsewhere. Or maybe the pace of change at a big financial institution is just too slow for your needs.

Whatever the reason, learning how to close a bank account doesn’t have to be complicated or stressful.

In the following link, we’ll show you everything from understanding why it’s important to ensuring all payments are handled properly before taking that final step of cutting ties with an old account. Read on!