In 2025, several small US banks failed, including The Santa Anna National Bank (June 27) and Pulaski Savings Bank (Jan 17). Meanwhile, major banks, including U.S. Bank, Wells Fargo, Flagstar Bank, and Bank of America, are significantly reducing their branch footprints. Over 300 net branches closed in 2025, driven by a shift to digital banking.
These Banks Closed the Most Branches in 2025
U.S. Bank and Wells Fargo shuttered the most branches this past year, combining to close a net total of 180 branches. This accounts for more than half of the net bank closures this year, according to OCC data.
There were 432 closures during 2025: 105 from NatWest, 101 from Halifax, 95 from Santander, 93 from Lloyds, 24 from Bank of Scotland, eight from TSB and six from Barclays. Already there have been 71 branches scheduled for closure in 2026: 40 from Lloyds, 17 from Bank of Scotland and 14 from Halifax.
In separate letters issued on Monday, the central bank instructed First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank and EXIM Bank to reduce the value of their shares to zero under the Bank Resolution Ordinance 2025.
While no major banks are currently failing (as of early 2026), risk factors like commercial real estate (CRE) exposure and tighter monetary policy remain concerns for some regional banks, with institutions like Flagstar Bank and Zion Bancorporation noted in mid-2024 for high CRE-to-equity ratios, though these are general indicators, not guarantees of failure. The most recent failures (2023-2024) involved Silicon Valley Bank, Signature Bank, and First Republic Bank, highlighting risks from interest rate hikes and large deposit outflows.
Yes, your money is safe in the bank as long as it's in an FDIC-insured institution, and we recommend keeping it there in 2026.
Deutsche Bank to exit India's retail banking: A shift towards localisation.
A task force formed to reform the banking sector in Bangladesh has initiated a financial investigation into six banks entangled in loan scandals. The banks under scrutiny are First Security Islami Bank, EXIM Bank, Global Islami Bank, Social Islami Bank Limited, ICB Islamic Bank, and Union Bank Limited.
The Best Banks in the United States in 2025
The Bottom Line
So, is your money safe in the bank in 2025? For most people, yes. The failures of Pulaski Savings Bank and The Santa Anna National Bank was unfortunate, but they weren't signs of a bigger problem. The U.S. banking system is pretty resilient, and the FDIC is there to protect your deposits.
For the most part, if you keep your money at an institution that's FDIC-insured, your money is safe — at least up to $250,000 in accounts at the failing institution. You're guaranteed that $250,000, and if the bank is acquired, even amounts over the limit may be smoothly transferred to the new bank.
"On January 20, 2025, the Federal Reserve Banks are closed in observance of the Birthday of Martin Luther King, Jr," the Federal Reserve's website states. Most banks follow the lead of the Federal Reserve and the federal government, though not required to do so.
The FDIC insures bank accounts for up to $250,000 per depositor, per ownership category, per bank. If a bank fails, insured deposits will be moved to another FDIC-insured bank or paid out. You'll usually get a Receiver's Certificate for money that isn't covered by FDIC insurance.
Two banks and five credit unions collapsed in 2025, and all were small, local institutions.
Starting February 13, 2025, the Reserve Bank of India has imposed several restrictions on New India Co-operative Bank. The bank will be prohibited from issuing new loans or renewing existing loans. It will not be allowed to accept new investments or deposits, nor will it be able to make any payments.
Reserve Bank of India (RBI) has identified State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) in its 2025 list. These three banks were continued to be listed under the same bucketing structure as in the previous year's list.
Which is the most secure bank in India?
Sometimes they do it as part of their global strategy. Citibank's India exit was part of a wider exit, leaving 14 markets in total including China, Australia and South Korea. This was to focus more on their institutional banking and wealth management segments. Standard Chartered chose to focus more on wealth solutions.
Here are the best low-risk investments in 2025:
High-yield savings accounts. Money market funds. Short-term certificates of deposit. Cash management accounts.
Sweden has officially become the first country in the world to go completely cashless. Almost every shop, café, and public transport system in Sweden now accepts only digital payments like cards or mobile apps. The popular app “Swish,” launched in 2012, is used by millions of Swedes to send and receive money instantly.
While the FDIC insures deposits up to $250,000, meaning your money is generally safe if a bank fails in a crisis, a legal mechanism called "bail-in" authority exists under U.S. law (Dodd-Frank Act) that could allow failing banks to convert large deposits into equity (essentially seizing funds to recapitalize the bank). Although not implemented in the U.S. yet, this "bail-in" concept has been used elsewhere, creating concern, though many experts believe regulators would prevent the system collapse it would cause. For typical accounts, deposits are protected, but large, uninsured amounts carry more risk in extreme scenarios, making diversification across banks a wise precaution.