Good idea to withdraw all my cash from the bank?

Question

I was reading how more and more banks will be closing down and you'll lose your money like the clients of IndyMac. The 100,000 insurance covered by the gov only has a reserve of 53 bil for everyone in the country so chances are you might get a small amount to nothing (I read this in business journals). I've withdrawn most of my money and only deposit small amounts at a time to cover my checks and bills so they can't take my money these crooks like they did to everyone's retirement funds a few years ago. What are your thoughts?

Answer 1

Never keep all your money in just one bank ever it is not a good idea  in this day and age.We never know what might happen anymore so better to be safe than sorry.I know i sure would not want all my money tied up and have to stand in a line like that so put some in another bank somewhere.Or even two banks.You will be glad someday you did as i truly feel it could very well happen again to more.

Answer 2

First, s***w the media and don't listen to their pessimistic viewpoints.  If people did a money run on all the banks because of gut feelings, we would really be screwed for no reason.  Find a financial advisor and invest smartley, and unless you have over 100 grand, I wouldn't worry about it anyway.

Good luck,

Answer 3

Very good idea, and I recommend it for everybody. Why?

I'd rather be safe and paranoid, laugh at me if you want. I can afford to be wrong, I'll lose nothing and just have to be careful where I hide my money.

BUT, what if I am right? Can you afford to be wrong? I promised all my friends, if their bank fails, I warned them, I WILL laugh at them if I'm right, can they afford to be wrong and worry even a few days about their money?

I don't care if banks seize to exist, it's not my fault. My mine deserves to be with me, I don't care if FDIC insured it, if I don't see it in cash, I'll always wonder where and when I can have it.

Answer 4

Keep only up to 100,000 or whatever is FDIC insured and make sure its an fdic insured account. You'll earn interest and it's guaranteed -- not just by insurance. The money will do you good and the bank good and its other customers.

Answer 5

No reason to pull the money out of your accounts. Whatever business journal you read is completely wrong. Additionally, only some banks are at risk of failing, so it is very possible you are with a bank that is not at risk.

If you have any more questions, or want more specific advice, we would be happy to hear from you. [e-mail]

Answer 6

Not a good idea.  Do not know how much the reserve is but if it is 53 billion and all of it was used to cover failing banks then it is likely money would not be any good anyway and we would be back to a barter economy.  Makes sense to me to keep your money under the mattress so some thief can steal it to support their habit.

If you have a real problem with banks think of putting your money in a money market account.  You get some interest, better than a savings account, and you can draw against it.  Would need to look at their policies to determine if there are any limitations on how often and how much could be withdrawn.

Answer 7

If everyone took out their money, then the banks would seize to exist. They'd have no money to pay the people working, make loans and everything.

Banks depend on your money to survive, its like what if someone took all the coffee out of Starbucks?

Answer 8

Bad idea.