Back in Nov of 2001 a loacl bank that I was using for my secondary checking account got taken over by the FDIC. I did not have over 100,000 in that bank, but there were many in my town that had several million dollars each deposited there. They were wiped out. I think they may have gotten 50 cents on the dollar. Many of them were senior citizens and that was their entire savings. So it does happen and I would at least acknowledging that it could happen and then decide how worried you are about it happening.