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Old 07-23-2010, 05:48 AM
 
1,492 posts, read 7,703,897 times
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Remember the Surgeon General warnings on tobacco products....how they changed over the years.

So has the FDIC commercial- perhaps it's a disclaimer.

Now it says, "backed by the credit of the United States".

What a joke! Our credit rating is going to slip soon if we keep spending $ we don't have.

So you must ask yourself if you would extend credit to the US....or would any other country? That's your 'insurance'. Alot of people believe their money is safe band backed by the government...... if our government falls- so will your money! They will have absolutely no obligation to pay you what was lost.
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Old 07-23-2010, 08:15 AM
 
Location: Bellingham, WA
465 posts, read 1,042,532 times
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Thanks for the responses, everyone.

It was suggested I put money into CDs, but the problem with that is I don't wany my money tied up right now. One of these days a house I like enough, for the right price, will probably appear on the market and I'll stop being a fence sitter.

The local credit union is paying around 1.5% interest on my savings account. The one in Texas? A whopping .25% That's why I'd like to consolidate my savings into the local account and use the interest for a few months of rent.

At any rate, people here seem to be saying the same thing my dad told me - don't go over the insurable limit at just one credit union or bank. I guess I'll see if there's another local institution that has a better interest rate than the one in Texas.
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Old 07-23-2010, 08:18 AM
 
Location: Texas
44,256 posts, read 64,216,996 times
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I had well over that amount in a money market account at a national bank for a couple of years while shopping around for a house...I mean, technically, it's only insured for 250k...but if you have confidence in your bank, I wouldn't worry too much about it.

Or put another person on the account...
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Old 07-23-2010, 11:23 AM
 
692 posts, read 3,137,584 times
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Having confidence in your Bank doesn't Cut It these days.

Most likely what you will find when looking at Banks for CD's will be the ones with the Highest interest rates have the Lowest Ratings.

That means you are at a Higher Risk they will go defunk with whats comming down the road.

Even if they have FDIC coverage, you will be out the use of your money and the intrest on your money while they sort out the collapse. Usually 1 to 3 months.

http://www.thestreet.com/bank-safety/index.htm (broken link)

Look for ratings of at least "C" for safety sake.

Last edited by silverfox; 07-23-2010 at 11:50 AM..
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Old 07-23-2010, 11:53 AM
 
Location: MMU->ABE->ATL->ASH
9,317 posts, read 20,955,366 times
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FDIC either finds a bank to take over, or they close it on a friday Night, and on Monday Morning they are there in the lobby issuing checks. My Sister was Head teller of bank down the street from one that was taken over by (and closed) by the FDIC. Her bank was informed Saturday to have lots of Cash ready on monday. Monday morning the FDIC people were in the lobby of the closed bank issuning checks. and Were told if they wanted cash to go to my sisters bank. Her bank was ready with lots of extra tellers and cust service people there to cash or open account for people.
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Old 07-23-2010, 01:11 PM
 
692 posts, read 3,137,584 times
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Quote:
Originally Posted by flyonpa View Post
FDIC either finds a bank to take over, or they close it on a friday Night, and on Monday Morning they are there in the lobby issuing checks. My Sister was Head teller of bank down the street from one that was taken over by (and closed) by the FDIC. Her bank was informed Saturday to have lots of Cash ready on monday. Monday morning the FDIC people were in the lobby of the closed bank issuning checks. and Were told if they wanted cash to go to my sisters bank. Her bank was ready with lots of extra tellers and cust service people there to cash or open account for people.



Maybe for a Money Market acct. etc. but thats not neccesarily how they handle all CD's.

I had 2 large CD's go down last year at different institutions and it took me a month or more to be fully reimbursed via FDIC coverage.

Investors do not always purchase their CD's thru a local bank. Many go for the highest rates where ever they may be.
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Old 07-23-2010, 01:47 PM
 
867 posts, read 2,102,532 times
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Just a minor detail of clarification: Credit Unions have deposit insurance from NCUA, not FDIC. The deposit insurance limits are the same for both, but there is a reason you won't see the FDIC sticker at a credit union.
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Old 07-23-2010, 10:42 PM
 
692 posts, read 3,137,584 times
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Quote:
Originally Posted by silverfox View Post
Having confidence in your Bank doesn't Cut It these days.

Most likely what you will find when looking at Banks for CD's will be the ones with the Highest interest rates have the Lowest Ratings.

That means you are at a Higher Risk they will go defunk with whats comming down the road.

Even if they have FDIC coverage, you will be out the use of your money and the intrest on your money while they sort out the collapse. Usually 1 to 3 months.

http://www.thestreet.com/bank-safety/index.htm (broken link)

Look for ratings of at least "C" for safety sake.

Here is a sample of why I said Check your Banks Rating before you get carried away doing business with them .....




Seven More U.S. Banks Shut by Regulators, Pushing Year's Failures Past 100
By Dakin Campbell - Jul 24, 2010

Seven banks were seized in seven U.S. states, marking the second year in a row in which at least 100 lenders have collapsed.

Banks with total deposits of about $2 billion were shut down yesterday, according to statements on the Federal Deposit Insurance Corp. website. The failures cost the FDIC’s deposit- insurance fund $431 million. The U.S. bank-failure count this year rose to 103.

Iberiabank Corp., based in Lafayette, Louisiana, acquired Lantana, Florida-based Sterling Bank in its fifth FDIC-assisted transaction. Iberiabank picks up six branches and about $372 million in deposits.

“This acquisition is an excellent fit for our company, providing a nice complement to our current franchise in Broward and Palm Beach counties,” Iberiabank Chief Executive Officer Daryl G. Byrd said in a statement. “We anticipate a smooth transition.”

Regulators may close the most banks this year since 1992 as souring residential and commercial mortgages impair capital levels. The FDIC included 775 banks with $431 billion in assets on the confidential list of problem lenders as of March 31, an increase from 702 banks with $402.8 billion at the end of the fourth quarter. FDIC Chairman Sheila Bair has said 2010 failures will surpass last year’s total of 140.

Banks were also closed in Georgia, South Carolina, Kansas, Minnesota, Nevada and Oregon, the FDIC said.

Renasant Bank

Renasant Bank, of Tupelo, Mississippi, paid a 1 percent premium to take on the deposits at Crescent Bank & Trust Co. in Jasper, Georgia, the FDIC said. Renasant picked up “essentially” all of the more than $1 billion in assets at Crescent, the agency said.

South Valley Bank & Trust of Klamath Falls, Oregon, paid the FDIC a 1.05 percent premium to acquire the deposits of Cave Junction, Oregon’s Home Valley Bank, which stood at about $230 million at the end of March, the FDIC said.

Roundbank of Waseca, Minnesota, acquired New Prague, Minnesota-based Community Security Bank. First Citizens Bank & Trust Co. of Columbia, South Carolina, acquired Williamsburg First National Bank of Kingstree, South Carolina.

Las Vegas-based SouthwestUSA Bank and Thunder Bank of Sylvan Grove, Kansas, were also closed.
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Old 07-24-2010, 12:25 PM
 
16,956 posts, read 16,713,784 times
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I still feel putting your money in coffee cans and burying it in your back yard is safer
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Old 07-24-2010, 03:15 PM
 
15,633 posts, read 26,183,088 times
Reputation: 30922
Quote:
Originally Posted by WannaliveinGreenville View Post
I still feel putting your money in coffee cans and burying it in your back yard is safer
My husband's grandmother did that with a coin collection worth around 30K.... they never found it. Grandma couldn't remember where she had buried it.

And after word got out about it, it became a treasure hunt all over the area where they lived. (Apparently, Grandma hadn't buried it in her backyard, but someone elses....)
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