The FDIC was created in 1933 to protect consumers when financial institutions fail and are forced to close their doors.During the Great Depression, insurance for banks was not available. So when banks failed, Americans lost their savings. Now when banks fail, the FDIC steps in to protect depositors and their money.“Bank failures are unusual,” says Mark Hamrick, Bankrate’s senior economic analyst and Washington bureau chief. “But when they happen, affecting covered institutions, FDIC coverage is important.”Having that insurance is a crucial backstop to financial uncertainty. Following a wave of bank collapses, including those of Silicon Valley Bank and First Republic Bank, consumers can ensure that all of their deposits within the insurance guidelines are guaranteed by the government, and they don’t have to worry about withdrawing their money from the bank.Generally, you can continue to bank as if a failure didn’t happen immediately after a bank failure is announced.