Losing Half a Million on NetBank's Fall

Among the other feedback, a couple of readers agreed that bank ratings are important, but questioned the objectivity of our ratings, since TheStreet.com also offers advice on stock picking. I assured them that our Bank and Thrift Financial Strength Ratings are indeed objective, and have nothing to do with bank stocks. The ratings are based on a detailed analysis of quarterly regulatory filings.

While an individual can limit his or her risk by spreading bank deposits over several institutions, this is not a practical solution for businesses. Small businesses clearly face major risk if they do business with a troubled institution, but it would be an administrative nightmare to spread operating cash over transaction accounts at several banks.

For consumers, the FDIC has an online application called the Electronic Deposit Insurance Estimator ,which can help you to figure out if all your deposits are insured. Even though the FDIC insurance limit on nonretirement deposits is $100,000, for example, a married couple can have a higher amount insured at the same bank if they open separate individual accounts, as well as a joint account.