One of the things you need to consider, what with the recent collapse of IndyMac, is whether or not your bank is FDIC insured.

What is the FDIC?

The FDIC is the Federal Deposit Insurance Corporation. It is a government insurance program designed to protect your money. If a bank fails, then your money, if the bank has been paying for FDIC insurance, is safe — up to $100,000 for an account.

It is important to note that only checking, savings, retirement and money market accounts are covered by FDIC insurance. Even at an FDIC insured institution, investments like bonds, mutual funds and stocks are not covered. Nor are money market funds.

If you have more than $100,000 in an account, you can spread your money to other FDIC insured banks. And if you have a money market fund, it is relatively easy to transfer the money into a money market account, so that it is covered.