§ 16604 Deposit Limits For Institutions

• •You can't put more money in a savings and loan or credit union than they're worth.
• •They have to make sure they have enough money to cover all deposits.
• •If they don't follow this rule, they could get in trouble.

Imagine you have a piggy bank that can only hold $100. If you try to put in $150, it won't fit and might break.

The same goes for savings and loan places or credit unions. They can't take in more money from people than they're actually worth. If they do, it's like trying to put too much money in the piggy bank—it won't work and could cause problems.