Posted on 05/05/2023 4:17:12 AM PDT by Oldeconomybuyer
NEW YORK (AP) — Recent turmoil in the banking industry may have you worried about your money.
Since March, three regional banks have failed — Silicon Valley Bank, Signature Bank and First Republic Bank.
If the recent bank collapses have you worried about the safety of your money, here’s what you need to know:
IS MY MONEY SAFE?
Yes, if your money is in a U.S. bank insured by the Federal Deposit Insurance Corp. and you have less than $250,000 there. If the bank fails, you’ll get your money back.
Nearly all banks are FDIC insured. You can look for the FDIC logo at bank teller windows or on the entrance to your bank branch.
Federal officials have been taking steps to make sure other banks aren’t impacted.
“People who have their money in insured accounts have nothing to worry about,” said Mark Hamrick, senior economic analyst at Bankrate.com. “Simply make sure that deposits fall within the guaranteed limits, whether it’s FDIC or the credit union equivalent.”
Customers of banks that have been sold will have access to their money from the new owner, according to the FDIC. For example, JPMorgan Chase acquired First Republic Bank when it failed earlier this week and customers are able to access all of their money from JPMorgan.
(Excerpt) Read more at apnews.com ...
The infamous Greenspan quote : “We can guarantee cash, but we cannot guarantee purchasing power”
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So the FDIC says my money is safe? The FDIC is just an arm of the federal gov and that gov is completely corrupt...so just how safe is my money? Who’s to say some bright boy at the FDIC won’t say, well you posted an anti-Pedo Joe post on Fakebook...NO MONEY FOR YOU! If the federal gov controls all the money just how safe can that money be???
I believed it was safe until Biden told me the “...banking system is safe.” THEN, I began to worry.
Access to cash isn’t going to be the problem.
It’s the value of that cash that is endangered.
As long as you play with the $250k rule....you are safe on checking, savings, and CDs. If you are talked into a bank-related mutual fund or bank-stock....you are taking up risk. My advice, if you have over the $250k...break it up and have another bank/credit union in the mix.
I’d suggest that people go back to the 1929 history (A Rabble of Dead Money, The Great Crash, and Since Yesterday....are all good introductions to the period, and what happened after the money crash.
The key part to 1929, is that banks simply didn’t have money, and people went to remove their savings....only to find banks no longer had money to issue.
I’ve always found banks to have a weird, uncomfortable atmosphere. Similar to a pharmacy, like there’s an aura of suspicion.
If you split your money up correctly you can maximize the coverage.
A husband and wife could have three accounts, one for him, one for her, and one joint. Each account is separately covered for up to $250k. So at a single bank they could get $750k of coverage. Then go down the road to the next bank and do the same thing. Now you have $1.5M covered.
Just be aware that all accounts belonging to the same owner at one bank are added together. A checking and savings account in the same name at the same bank are insured for $250k together, not separately.
Most brokerages have a $500 k SIPC insurance to cover stocks and bonds.
If you have more than $250k in cash…you should be doing research on where to put the rest.
Buying “bank managed” mutual funds is usually a losing proposition because they kill you in fees. Unless you are dealing with a large “Trust” bank, you can usually do better with a few hours of research.
If you don’t hold it in your hand, it’s not really yours.
Everything depends on how YOUR bank operates. Some have been doing better than others at managing debt and assets in the low interest rate era and in this period of rising interest rates.
$500,000 for couples.
In regard to the 250K rule, I recently asked this question at a Board of Directors meeting for a local non-profit I do the bookkeeping for; “Which institution do you have more faith in for reliability and sustainability; the local-owned banks in our farming community or the federal government?” Nobody answered immediately, because they all had to think about it.
I’ll relate this story from 1929. I had a great-uncle who resided in a highly rural area of Alabama, with one local bank...run by one guy, his wife, and one single employee. His bank never shut down....never had issues, and survived without any closures(these were all farmers with money in the institution).
Where you have today...mega-banks, with board members who have no real background in the field...it’s a high chance that they’ve screwed-up and geared the company for failure.
But I say the same for mega-churches who have deacons with low morals....same for logistical companies with board members with no background...same for airlines with boards having no expertise in travel or aircraft. Look at the bulk of people hired by Biden as ‘Secretaries’, and how they have remarkably no background in what they do.
If there’s a general bank failure including BOA, Wells Fargo, Citibank the FDIC won’t have nearly enough to cover.
"Since March, three regional banks have failed — Silicon Valley Bank, Signature Bank and First Republic Bank.
If the recent bank collapses have you worried about the safety of your money, here’s what you need to know:"
"IS MY MONEY SAFE?"
"Yes, if your money is in a U.S. bank insured by the Federal Deposit Insurance Corp. and you have less than $250,000 there.
If the bank fails, you’ll get your money back."
"Nearly all banks are FDIC insured. You can look for the FDIC logo at bank teller windows or on the entrance to your bank branch.
Federal officials have been taking steps to make sure other banks aren’t impacted.
“People who have their money in insured accounts have nothing to worry about,” said Mark Hamrick, senior economic analyst at Bankrate.com.
“Simply make sure that deposits fall within the guaranteed limits, whether it’s FDIC or the credit union equivalent.”
Yes, according to some estimates the FDIC has only enough on hand to cover 1% of deposits.
It is also important for EVERYONE to have some actual CASH on hand in your house. US $100, $50, $20 bills. At least enough to carry your expenses for a couple months.
Each account is not insured to $250k — your total monies and investments are insured up to $250k, so anything over the $250 you lose, if/when the bank goes under.
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