Is your bank safe?

The government is expected to reveal the results of its all-important bank stress-tests next week. Investors and customers alike will be scrutinizing these numbers to make sure their bank has the wherewithal to survive in this tough economic environment.

So how can you be sure that the bank where you keep your money is safe?

1) Pay attention to the numbers. The Federal Reserve's stress tests will value bank assets and analyze their capital cushion. Investors and large customers will be scouring the reports next week looking for telltale weaknesses.

But here's the rub: for consumers, this information is less than useful. What you need to know is whether your bank is lending to people like you, whether fees are out of sight, and if the bank's credit card department is cutting credit limits. The Fed is less concerned about all of this… Plus, the stress test is only being applied to 19 of America's 8,500 banks: yours might not even be tested.

2) Check up on your bank. You're better off consulting sites like bankrate.com than going by broad rules of thumb. Bankrate offers a safe and sound rating system that can help you get a picture of how your bank is doing. Bankrate updates its ratings quarterly, so be sure to check back for the latest every three months.

You can also check out HSH.com for mortgage and consumer loan information divided by region.

3) Don't panic. Even if something happens to your bank, your money is protected by the FDIC up to certain limits. Through the end of this year, individual accounts are fully protected up to $250,000, and the same goes for all retirement accounts, including IRAs.

And if you're over the limits, spread out your money at different institutions, or consider joining a credit union. Credit unions are just as safe a bet as banks are. Instead of the FDIC guarantee, you have the National Credit Union Association to back up your accounts.

One of the worst moves you could make is pulling your money out of a regulated institution and holding the cash yourself.

Finally, consider the size of the bank where you invest your money. Size doesn’t guarantee safety. Some large banks are struggling because of the collapse of collateralized debt obligations; and while many would say that small institutions are more risky because of their limited ability to raise capital, some haven't gotten into the quagmire of CDOs –  collateralized debt obligations, which are asset-backed securities.