Is your money safe in American banks?

IN NORMAL TIMES people do not give it a second thought: they put their money in a bank and trust that it is safe. But every once in a while, a crisis shakes that faith. The collapse of three mid-sized banks in America over the past month has been one such moment. Savers have moved their cash to bigger banks; the government has scrambled to reassure them. Most people have little to fear: so long as their accounts have deposit insurance, their money is guaranteed even if their bank collapses. But about 40% of deposits, by value, are uninsured because they exceed the $250,000 that the government guarantees. Some observers say the government should raise that cap or even extend insurance to all American checking and savings accounts. How does deposit insurance work, and should it be expanded?