Is Our Money Safe At The Bank?

Question

Is Our Money Safe At The Bank?

Answer 1

Banks are required to become a member of the FDIC which covers your money up to $100,000.  However, smaller, local banks will have more difficulties maintaining viability over the next year or so and may close while the larger banks like City Bank, Chase Manhatten and Bank of America my have some problems, but should sustain.

Answer 2

Your money is safe at the bank if your bank is insured by FDIC.Typically each individual is protected up to 100 thousand dollars. Any deposits over that amount or any investment accounts may not be covered and if the institution gets into trouble (I.e. IndyMac). I would reccommend contacting your bank to discuss any concerns if you have more than the 100k at that institution.

Answer 3

You can find out a whole lot from the FDIC website, here's a video that I found helpful:

http://www.vodium.com/MP/MPF/1.1.3/mpf.a...

From the video:

"FDIC Insurance covers total of all deposit accounts at an insured bank, including branch offices, up to the FDIC's insurance limit."

Additionally: "basic insurance limit is $100,000 per depositor, per insured bank".

So if bank failure is a concern for you, leave some money in your current account (leave say, $90,000 or so, to allow for interest) and put the rest of it, up to another $100,000, IN AN ENTIERLY DIFFERENT BANK.

DO NOT PUT IT IN A DIFFERENT BRANCH OF YOUR ORIGINAL BANK!

So for someone with $250,000, it would look like this:

Bank A: $90,000

Bank B: $90,000

Bank C: $70,000

If you have less than $100,000 keeping it in an FDIC insured bank should be fine.

Now, the video goes on to state that yes, there are ways for you to be insured for more than $100,000s worth of deposits, but that is going to depend on the type of accounts you hold. The simplest solution still seems to me that you put the appropriate amounts in different banks, while you consult a fee only financial planner to figure out if there is a way you can keep everything with the same institution.

Good luck!

Answer 4

Any additional money from the federal government is not a guarantee, but rather a loan, which will only be made subject to the approval of the Secretary of the Treasury. Further, that the loan is to be made at “current market yields." What do you suppose would happen to US Treasury yields during a true emergency? I can imagine a few scenarios where they might skyrocket, and this would serve to compound the difficulty of keeping the FDIC fund solvent.

Answer 5

If you are over $100,000 don't exceed $100K in any one bank - it has to be spread out.....

Answer 6

Yes, to a point. It is federally insured up to $100,000.