Most folks have a bank account. Not everyone checks their bank statement to view their record of checks written, deposits, etc. on a timely basis. Accountants call that "reconciliation."
Every bank will make a mistake once in awhile. They handle a very large volume of transactions. It is only an unusual event when they make a mistake. However, they can deposit money to the wrong account, clear a check for a wrong amount, etc.
The reconciliation does not have to be a big problem, especially if you do it every month.
A long time ago, I made a deposit to my bank account, but the bank recorded it as a deposit to my father's account. After I did my reconciliation and discovered the problem, I worked with the bank to get the correction done. It was fairly easy.
What was a surprise was my father said, "I don't know why that deposit showed up in my account, but I was going to look into it later..."
Maybe you have received a telephone call from your bank, asking about a transaction, to see if it is valid. The banks are trying to process all those items correctly. Our CPA firm got a call from our bank about two years ago, asking if the check they received to deposit to someone's account in Southern California was valid. It was not a check we wrote. Someone had tried to forge a check and the bank caught it, in time!
Some good news is the federal deposit insurance is now permanently set at $250,000 per account for each depositor, at each bank.
And one person could have an individual account, a joint account with others, a trust account and retirement accounts. Each account has its own $250,000 FDIC federal deposit insurance.
We don't usually suggest you keep so much cash in bank accounts that you need to worry about the FDIC insurance limits.
You may have read about some banks that have closed or merged with other banks. That happens sometimes, but it is not a problem to worry about. The FDIC will send checks to depositors (up to the insured limit). Most banks just merge with another bank. Your account is fine, the new bank will help you handle that change.
Please check out your bank statements, every month.
Did you hear "You don't need a parachute to skydive. You only need a parachute to skydive twice."
• John Bullis is a certified public accountant, personal financial specialist and certified senior advisor serving Carson City for 45 years. He is founder emeritus of Bullis and Company CPAs, LLC.