With news of "failing banks," should people begin to take their money out the banks?

Question

Does this apply to credit unions too? Why are the banks failing, and is the American dollar worthless?

Answer 1

People taking their money out of banks is what makes banks fail.  It's called a "self-fulfilling prophecy".  Read about the bank runs of the 1930s.

Answer 2

Just make sure your covered by FDIC. IRA will be covered up to 250k and checking/ savings will be covered up to 100k, anything more take it and open a new account.

Answer 3

if you have over 100,000 in the same bank

make sure your banks are covered by FDIC or switch to one that is

Answer 4

I took my $2.99 out.

Answer 5

For those in the UK, you are covered up to £35K in each financial institution.

Answer 6

Banks start to fail, as every one takes money out in large amounts, or is struggling to pay of bills, if this is evident then u should take out money.

But if you are with a Gd bank then there is no need to take all Ur money out of it

I'm in the UK and the value of a dollar is half over here e.g. $1 = 50p in the

Answer 7

hey, that would be a great idea, and why don't we pull our stocks while we're at it. what could possible go wrong? besides we're long overdue for a second depression.

Answer 8

And do what with it?  Hide it under the mattress? Stick into a portable safe?

The FDIC insures deposits up to $100,000. You should be fine. You could check around and possibly move your account from a troubled bank to a more secure bank. It will require some investigation on your part but if it gives you peace of mind then it might be worth it.

The worst thing you can do is panic. Don't act on emotion. Think logically and critically. Ask questions. Look things up as best you can. Take it slow and one thing at a time. This is what I do or try to do. It requires discipline.

Answer 9

Credit unions are covered by equivalent federal insurance.  Their insurance fund is the NCUSIF and it is offered through NCUA.  The coverage limits are the same as for FDIC, up to $100,000 per owner, not per account.  But, you can increase that coverage by adding payable on death beneficiaries, if you are over the limit.

One other big difference with the credit union federal insurance is that it is capitalized by the credit unions, and backed by the government.  This means that the credit unions have some influence over the practices of other credit unions because they're on the hook financially.  

You won't find the same risky practices at most credit unions that are commonplace among banks.

You need not worry as long as you don't have more than $100,000 at any FDIC or NCUA insured institution.  The limit is $250,000 for an IRA.