The FDIC says your funds are safe up to $100,000 ($250,000 for retirement funds). If you have more in one bank

Question

should you move the excess to other banks? Some economists are strongly suggesting this. Do you think we're in for a 'run on the bank' fiasco?

(This unfortunately doesn't apply to me. My $2,000 savings is neatly tucked in my mattress), but many people, expecially retirees, have a good nest egg that seems to be at risk.

Answer 1

It is completely irrational to have more than the insured amount in each account, especially when it is extremely easy to open accounts at other institutions. There won't be another run on the bank since most depositors are insured by the FDIC.

Its not the best idea to keep your money under your mattress since its purchasing power is constantly declining as the country experiences inflation. You should really put it into a high yield savings account.

Answer 2

yes, its not wise to have more than the insured maximum in any one institution.  No sense in risking it when it is so easy to open a second account in a nearby bank.

Answer 3

I bank with indymac, I was already overdrawn when they announced the takeover. I'm safe.