Treasury Secretary Janet Yellen Thinks More Bank Consolidation Could Be on the Way. Here's What It Means for Your Money

Three banks failed this year: First Republic Bank in San Francisco, Signature Bank in New York, and Silicon Valley Bank in Santa Clara. All three have been merged with competitors. But these dead banks probably won't be the last to consolidate.

Why? Two reasons, according to U.S. Treasury Secretary Janet Yellen:

• Fed rates
• Remote work

Fed rates have been rising rapidly. For banks, some lending practices that were money-makers are now money-drainers. Times are changing, and banks are hurting.

Remote work has thrown another wrench into the equation. More people work from home, so there's less demand for commercial office buildings. Banks that engage with commercial real estate may be bleeding money on these investments.

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If Janet Yellen's concerns play out, then banks could consolidate for one of two reasons: to avoid bankruptcy, or to buy bankruptcy assets for cheap. This could happen in a couple of ways:

• A bank purchases the assets of a bankrupt competitor.
• A bank with stable finances buys a smaller, oft-struggling bank.

Regardless, consolidation matters. If your bank merges with another, the fees, services, and interest rates your bank offers could change.

Interest rate changes

The interest rates on your accounts may change -- think savings accounts or certificates of deposit. Loan rates could change, making future borrowing more or less expensive. But don't worry -- interest rates on fixed-rate loans you've already taken should remain stable.

New products and services

Your bank may offer new products or services like checking or savings accounts. Your bank may offer new credit cards or mobile apps. The interface of your banking product may change -- you may discover a new web layout, buttons, and so on. Plus, old services may be retired.

Fee changes

Your bank may change which fees it charges, and how much. If you currently pay $50 for overdraft fees, you may now pay $100 or even $0. You might pay more to withdraw money from ATMs, and so on. Banks typically alert customers to these sorts of changes.

Branch closures

Should it be acquired, your bank may close physical locations. On the other hand, the acquiring bank may open new branches to service new customers. These days, many folks can manage their money online, but if you prefer face-to-face contact, this could alter your routine.

Regardless, your savings are insured by the FDIC, if your bank is under its purview. If you have less than $250,000 deposited per insured bank account, you're golden -- the federal government has your back. But you could lose savings beyond that initial $250,000 during a consolidation.

The FDIC also ensures that when banks merge, the transition is smooth. It did so for Signature Bank and Silicon Valley Bank.

You might not even notice that ownership of your bank has changed hands, or that your bank has swallowed up a smaller one. If you notice discrepancies, you can confirm them by taking the following steps:

1. Head to the nearest bank branch or your bank's website.
2. Contact a representative in person, over the phone, or via email.
3. Ask whether a merger has occurred, and if so, how it has affected your account.

Be sure to bring specific questions to the table so all your concerns are addressed.

Janet Yellen's banking concerns seem limited to anti-competitiveness, not a weakness in the overall banking system. She doesn't expect banks to collapse, domino-style. Consolidation could lead to more fees in general, but banks are still some of the safest places to store money.