Have The Bank Failures Caused You To Re-evaluate Where You Are Keeping Your Savings?

OneEyedDiva

OneEyedDiva

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Location
New Jersey
My savings constitutes 26% of my portfolio. Most of that is in a credit union account. Our credit union is not even among the top 100 in the country. I'm going to transfer some of what's in there to two different bank savings and my brokerage so that my savings at each institution will have similar balances. The chosen institutions are among the top 11 (our of 100) in the U.S., with one of them being #1.

Have you or will you shift some funds in the wake of the bank failings. Do you need to?
 

i don’t keep a lot in banks , never did .

i had a money market fail in 2008 in a brokerage account ..we lost about 3% but the accounts were locked for a few months .

so i only use treasuries via treasury money markets or etfs …i use shy and sgov .

a mass failure in banks draining fdic would take an act of congress to refund and pay everyone.

treasuries need no act of congress
 
My partner has stressed this quite a bit…as he has over the insured limit. He was moving monies around to make it safer. I also am over the fdic insured…but the money is in cd’s…do not know if that makes a difference?
 

I guess i am always confused as to why it takes a crisis for some people to think about the rules around FDIC or other rules and regulations....

i have mine in separate banks/ Credit unions.... not that i have above the insured the limit...in any one bank.........

I was amazed that so many folks i talked to or businesses seemed unaware there is a limit on deposit insurance.
some businesses after the collapse realized and moved money.....into more then one place.... where were their accountants on this before it became a possible loss????
 
Muskrat said:
My partner has stressed this quite a bit…as he has over the insured limit. He was moving monies around to make it safer. I also am over the fdic insured…but the money is in cd’s…do not know if that makes a difference?
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"but the money is in cd’s…do not know if that makes a difference?" Now would be the time to find out ! I'm impressed that you and your partner have that much in banks!
 
expenses are way to high ….sgov is .05 and may or may not go up to .12 in june ,the jpm one is .26 and is many times higher

a 1/4 point on this is to high.

i would rather take my chances of no delays accessing money in a widespread bank failure via treasuries then banks .
fdic can be drained and needs an act of congress to refill…all that could take time .

we were locked out of a money market in 2008 which was not treasuries for 2 to 3 months when it broke the dollar ….we lost 3% ..luckily i had just 35 bucks in it
 
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OneEyedDiva said:
My savings constitutes 26% of my portfolio. Most of that is in a credit union account. Our credit union is not even among the top 100 in the country. I'm going to transfer some of what's in there to two different bank savings and my brokerage so that my savings at each institution will have similar balances. The chosen institutions are among the top 11 (our of 100) in the U.S., with one of them being #1.

Have you or will you shift some funds in the wake of the bank failings. Do you need to?
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I believe that your money is insured up to $250,000. If you have over that amount you should think about having another account.
 
this much I do think I know…money in different accounts does not protect you. Even money in different banks needs to have different “mother ship” of the bank’s ownership. It gets weird fast. Money market accounts have a different protection which is not the same as fdic…please correct me on any and all if I am wrong.
 
money market accounts at banks are differe then money market funds at brokerages .

money market accounts which are what banks offer are fdic.

different account registrations even at the same bank are good up to 250k each.

so as an example

  • Open a single account for each adult family member.
    If you and your spouse or partner each have a single account insured up to $250,000, together, you’ll have a total of $500,000 coverage.

  • Pool your money into joint accounts.
    Joint accounts are insured separately from accounts in other ownership categories, up to a total of $250,000 per owner. This means you and your spouse can get another $500,000 of FDIC insurance coverage by opening a joint account in addition to your single accounts. And adding another joint account owner—like a parent—adds another $250,000 in coverage, and so on.

  • Save for your child.
    You may be able to get an additional $250,000 of coverage for your family by opening a custodial account (also known as a Uniform Transfers to Minors Act or Uniform Gift to Minors Act account) in a minor’s name. For insurance purposes, the FDIC treats these as single accounts owned by the minor.

  • Save for retirement with an IRA Savings Account or IRA CD.
that is another 250k coverage
 
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Muskrat said:
The different account registrations is the key here. If they are all registered to a single entity (person) the total is insured up to 250000
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yep ..

hypothetically a wife can open a single account and get 250k coverage , the husband 250k coverage , a joint account gets another 250k each in coverage , so 1 million can be protected .

iras also count separately
 
Muskrat said:
So mathjak…am I right about having separate accounts at different banks being ok as long as different mothership s?
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not sure what you mean by different motherships …if you mean in banks owned by other banks yes as long as they are different bank names .

but even in the same bank a couple can get a million dollars covered by having different account registrations.

a joint account is good up to 500k as it is 250k each .and an individual account for each is another 500k
 
Kind of taking a side road here, but I have a question. We have accounts at different banks and I've always felt good about that when it comes to "safety." But then I realized I don't have a clue what would have to be done if a bank (or banks) fail. How would people actually recover the money and how long would that take? I've looked it up online and there are conflicting answers that I wasn't expecting. :cry: Anyone know for sure?
 
mathjak107 said:
the answer is it depends how many banks fail and the conditions of the surviving banks as well as the fdic ability to pay .

in short no one knows if on a wider scale
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Theoretically though MJ, we shouldn't have to worry about larger banks like Chase, TD, PNC and Wells Fargo (where I'd never park my money) or any of these top 10, to fail, right? TD, BTW is #11 on another list I saw.
https://www.advratings.com/banking/largest-banks-in-america
 
the problem is that even the largest banks only keep a low percentage in reserves …

if people get scared in a severe down turn and want their money the reserves can’t cover it …..

they would have to try to liquidate assets , which in a severe down turn may be impossible to liquidate or not bring enough .

so a bank can have huge amounts of assets and worth but they are deemed failed when they can’t cover the withdrawals demanded on any given day.
 
oldmontana said:
I believe that your money is insured up to $250,000. If you have over that amount you should think about having another account.
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Thank you but I wouldn't have that much in a savings account for a couple of reasons that I won't go into now.
 

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