In this still struggling economy, unpaid and bad loans causes bank to fail. The Federal Deposit Insurance Corp. shuts down banks on Friday, allowing them to transfer deposits to another bank. Consumers need to know what happens if their bank fails, so they are not left out in the cold, according to The Detroit News.

State or federal regulators can decide to close a bank if it is in danger of becoming – ironically – bankrupt, The Detroit News reported. Many of the bank closures during the past year have been because of the housing crisis. With consumers unable to pay loans because of being laid off due to the recession, they stop paying off loans and mortgages.

The FDIC insures money deposited in savings accounts, checking accounts and certificates of deposit up to $250,000. In the event someone "banks" at a credit union, The National Credit Union Administration, government agency, provides non-profit members insurance up to $250,000 through the National Credit Union Share Insurance Fund.

Read the full article at The Detroit News, by clicking here.