Money safe in bank while in recession?

Question

I was talking to my friend last night and she said something about she's not sure if money in the bank is safe while recession cause something about the great depression banks crashed and all? My country is in recession and all my savings is in a bank that has interest rates that are slowly dropping. Should I be worried?

Answer 1

firstly banks are financial institutions ... losing money would mean losing business. it has techniques to stop frm losing money .. mostly done throught a process known as hegdging. and also the state bank provides tools to safe guard against such mishaps. anyways consult ur bank and find out. u cud invest ur money in sth else if u feel unsafe but then its hard to get liquify such investments.  

Answer 2

After the great depression FDIC was developed to protect peoples money in cases like this.  They insure your money up to 100,000 - if you have more then 100,000 then you are vulnerable.