The Federal Deposit Insurance Corp. (FDIC) saw its insurance fund, which protects bank deposits, fall 20% in the second quarter to $10.4 billion, the lowest level in 16 years. The FDIC, which closed 81 banks this year, said it still has 416 banks on its “problem list,” up from 305 at the end of March.

Despite the drop, you probably don’t have to worry about the money you have deposited in most checking and savings accounts. “While challenges remain, evidence is building that the U.S. economy is starting to grow again,” said FDIC Chairman Sheila Bair. “Banking industry performance is–as always–a lagging indicator. The banking industry, too, can look forward to better times ahead. But, for now, the difficult and necessary process of recognizing loan losses and cleaning up balance sheets continues to be reflected in the industry’s bottom line.”

So what do you need to know about how the decline of the FDIC insurance fund could affect you?

• Banks might be less willing to lend money if they have to pay special fees to get more cash in the fund
• Banks might offer lower interest rates on savings accounts, CDs, and money market accounts
• Make sure to cap deposits to $250,000 or less per depositor for each account

The bottom line is that it’s still safe to deposit money in banks. Look for competitive interest rates on deposits.