Is money in the bank safe? What happens if the stock market crashes? I don't owe any money!?

Question

Is money in the bank safe? What happens if the stock market crashes? I don't owe any money!?

Answer 1

FDIC-insured banks insure your accounts up to 100,000.  This does not mean ANY bank.  Only FDIC-insured banks.

If you have funds beyond 100,000, you don't need to go to separate banks to deposit each 100,000 interval, you only need to ask one of the account executives to administer the account.  They have a terminology (the name escapes me at the moment) where you can deposit with one bank, but they do secondary distribution of separate 100,000 accounts so that you are not exposed to risk of loss in the event of a bank collapse, or panic-induced run on the bank.  A former Federal Reserve officer was on CNBC the other day explaining this procedure so a larger bank will be able to handle it appropriately.

Answer 2

Accounts in US banks are normally insured up to $100,000 by the FDIC.  (Robe is correct to remind us that some banks are not, although I have never been in a non-FDIC-insured bank, nor do I recall seeing one offhand.)  Credit unions have similar insurance via the National Credit Union Administration.

FDIC is paying out right now for a few failed banks.  There is no danger that the US government will allow the FDIC commitment to go unfulfilled.

Answer 3

The bank is safe up to $100K.

Answer 4

Most bank deposits are guaranteed up to a certain amount by the federal government. Call your bank and ask about their coverage.

Answer 5

fdic up to 100k, stock mkt,,if you buy for cash, not margin, no additional liability

Answer 6

Yes, banks are very safe, and your deposits in an account are less than 100,000 are insured.  But keeping your money invested in a bank account is not practical or sound investing.  Inflation will always erode part of your money.

The market has too many safeguards to "crash", the market goes up and down, not up OR down.   There are too many institutions or large portfolios active in the market to have it crash.  As long as the government stay out of the market and let the market place provide directions they better everyone will be.

It's nice not to owe money, but not all debt is bad.  You should take time and read Rich Dad Poor Dad by Robert Kiyosaki.