Is Your Money Really Safe?

Financial Crisis Insurance With constant news of banks collapsing from the investment crisis how safe is your local bank?

by Tiffany Craig

Published: Mon, November 17, 2008 - 5:05 pm CST Last Updated: Mon, November 17, 2008 - 7:01 pm CST

Analysts are predicting that as many as 300 banks could collapse before the investment crisis is all over. So, is your money safe in the bank?

We took that concern to banking expert Steve Reider. He works for a company called Bancography. They track the ups and downs of the business. Reider points out that this is an investment bank crisis not a community bank meltdown.

Reider also says its not time to pull your money out of your account. The Federal Deposit Insurance Corporation or the FDIC was created to protect money if your bank fails. In other words, it's insurance for your money! "No consumer has ever lost so much as a penny in insured savings since the FDIC has been established."

In the recent Bailout package approved my Congress, the FDIC insurance coverage on your money has jumped from 100,000 dollars to 250,000 through the end of next year. "Their deposits up to 250,000 dollars in each institution are backed by the full faith and credit of the United States government." In 2010, the insured amount will go back down to 100,000.

Click HERE to make sure your bank is a member of the FDIC. You can also call the FDIC at 1-877-275-3342.

For information about credit unions, click HERE.

For independent ratings of banks and credit unions, visit bankrate.com. OR bauerfinancial.com.

Click HERE to see a graph of troubled banks between 1990 and today. (Courtesy: Bancography)

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Razorsharp Says:

Mon, Nov 17, 2008 at 7:31 pm

You are exactly right BamaBob. I know a couple of people who were affected by their bank changing hands a few months back. On Friday they were told it would be Monday or Tuesday before they could access their funds. It just so happens that they had to go out of town that weekend…not good for them. What if that happened on a larger scale and for a longer period of time?

BamaBob Says:

Mon, Nov 17, 2008 at 6:15 pm

But, how long does it take to get your money, if a bank fails? What happens if China decides to call in its loans to our government? Our government can’t even cover the 750 billion dollar bailout. They will have to borrow most of the money and float some bonds in hopes of getting the rest.