The Daily Money: Silicon Valley Bank will be purchased by First Citizens

I know, I know, it's Monday. But hey, Friday is only five days away! It's Charisse Jones with the headlines you should know as you start the week.

First Citizens is going to purchase Silicon Valley Bank, the troubled institution that went under this month sparking doubts about the health of the broader banking system and compelling regulators to take the unusual step of guaranteeing even uninsured deposits.

SVB had 17 branches that will become First Citizens locations as of Monday, and SVB customers will become First Citizens depositors.

A Northern California-based bank that catered to the tech industry, SVB failed March 10 after its customers began emptying their accounts amid concerns about the bank's solvency.  Later that same week, Signature Bank, an institution that focused on the cryptocurrency industry also collapsed.

By the end of the weekend, federal regulators decided that they would back all deposits at the two banks, including those that exceeded the $250,000 maximum guaranteed by the Federal Deposit Insurance Corporation. 

Banks may give customers more money for their money

After the rough couple weeks that followed the SVB and Signature bank failures, there may be a silver lining for those who have accounts at other institutions: a better return on their money.

To calm depositors who've switched their money from regional banks to larger banks they believe may be more stable, some banks are raising their savings account and CD rates to retain customers or attract new ones.

“It’s likely that concerns about maintaining deposit levels have put upward pressure on some deposit rates at some banks,” says Ken Tumin, founder of DepositAccounts.com, which monitors bank savings and CD rates. Financial institutions want to “shore up their deposits to reduce the odds of being hurt by a bank run.”

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TL;DR version: how decisions by the Federal Reserve, government and companies impact you.

Follow Charisse Jones on Twitter: @charissejones.