Comments on: Is My FDIC Insured Checking Or Savings Account Safe If My Bank Fails?

By: richard goldstein

richard goldstein — Thu, 10 Dec 2009 20:27:12 +0000

do stockholders lose all their money when a bank fails?

By: Foot In Mouth

Foot In Mouth — Tue, 16 Jun 2009 14:31:24 +0000

“I would probably have the bulk of my money either invested in mutual funds, index funds, money market funds, or other broadly diversified investments that have never been known to actually fail”

Except the money funds that failed in September!!!

By: angela

angela — Sat, 14 Mar 2009 17:58:15 +0000

My fear is that the GOV has always put rich people first. I fear that should 1929 repeat, the same will happen again.
Right now we have about $4,000.00 in the bank. part in joint acc and part in single acc.
Since we don’t have much money the GOV knows we can’t get an attorney to fight what ever they do.
Look how long it took for minimum wage to be raised, 10years. And it is still to low. And they pass laws that pay factories to close up and move over seas.
Those of us with little to know education hope and pray for factory jobs, because they have always paid $10 hr and up.
Now, those jobs are vanishing. We are losing our homes and we can’t buy anything that isn’t a need.
The poor are the majority of this country and because we are losing jobs we can’t spend money. This is why the economy is dropping more and more each day.

By: Paul

Paul — Thu, 05 Mar 2009 17:25:41 +0000

Is there a time frame in which the FDIC has to return your insured money if your bank fails ?

By: caz

caz — Sat, 21 Feb 2009 17:37:56 +0000

Would we be fully covered by FDIC if we have $500000 in a joint cd at b of a and another $200000 in a joint cd at first republic bank, which is also owned by b of a? Thanks

By: Curious

Curious — Thu, 23 Oct 2008 03:03:30 +0000

What a great ANSWER!! But, what if a bank is in trouble, your account is depleting and now there is only half of what you had before Sept.16,2008? WHAT AMOUNT WILL THE FDIC PAY:Before all the trouble started or the amount that is left after the new bank buys in? Does the FDIC have to close the bank first before you get anything? I am speaking of Wachovia and Wells Fargo. What a magilla!Should the account be closed?Thanks.

By: Raymond

Raymond — Tue, 30 Sep 2008 05:23:04 +0000

Whata Jerk,

No, My understanding and I’m 95% certain of this, is that the FDIC Insurance Coverage provides prompt lump sum payment. A staggered installment reimbursement plan like you described seems very counter to the spirit of true federal government protected FDIC insurance coverage.

This prompt one time payment in full is probably why there have been unfounded concerns about FDIC bankruptcy, which will never happen. If all fails, the government would simply authorize itself and the U.S. Mint to print more money.

By: whata jerk

whata jerk — Tue, 30 Sep 2008 05:12:02 +0000

Does the FDIC pay your $100,000 coverage with a “pennies on the dollar” payment plan? I.E. you have $80,000 in the bank and they pay you $1,000 a month for 80 months?

By: Raymond

Raymond — Mon, 22 Sep 2008 21:17:53 +0000

Conehead,

Yes, but I believe the key operative word here is “legitimate”. You can’t form a separate sham Limited Liability Company for the sole purpose of trying to bypass ordinary FDIC insurance coverage limits.

By: Conehead

Conehead — Mon, 22 Sep 2008 19:22:52 +0000

If I form a legitimate business LLC under my personal social security number, is it considered a separate category by the FDIC for an additional $100,000?

By: Pelican Pete

Pelican Pete — Sun, 21 Sep 2008 13:35:18 +0000

Well, Thanks, Larry! That is a word. However Scoopit is a New Zealand website that lets anyone post anything they want. In Scoopit’s own words, “What is Scoopit? Scoopit is a collection of links submitted and ranked by readers. ”

Please get a real word from a real person. Scoopit is something I do after my dog does his thing, so don’t you be confused.

Besides, if FDIC was ever to run out of money, Congress would just vote them more.

Don’t worry, be happy!

By: Larry

Larry — Sat, 20 Sep 2008 21:16:31 +0000

This is an excerpt from Scoopit independent online news.

The bottom line is that the “coverage ratio” is worsening for the FDIC flock, and the coverage ratio for the FDIC is not looking too healthy either. At the end of the second quarter, the FDIC reserve fund was down to a mere $45.2 billion after just 9 bank failures this year. While it does not publish a coverage ratio in respect of itself, IndyMac alone will require an estimated $8.9 billion of FDIC reserves to resolve, almost twenty percent of remaining reserves. The FDIC intends to raise reserves through a premium increase in October, but a lot can happen in two months in these febrile times.

So the FDIC may well become yet another troubled monoline insurer. Indeed, Sheila Bair, serial forbearance artiste chairman of the FDIC (formerly a Treasury official and Republican congressional aide), conceded as much when she raised the possibility this week that the FDIC might be joining the queue for a Treasury hand out to see it through short term liquidity problems.

“I would not rule out the possibility that at some point we may need to tap into [short-term] lines of credit with the Treasury for working capital, not to cover our losses,” Bair said in an interview. WORD!

By: Pelican Pete

Pelican Pete — Thu, 18 Sep 2008 12:38:47 +0000

Larry, What “word” is?

john, What “Rumors” are?

Without backup, you both sound like trolls!

By: john

john — Thu, 18 Sep 2008 06:06:10 +0000

Rumors the FDIC is considering lowering the insurance from $100K to less to $50k, is this a possibility, since there is only 1.5 cents for every dollar on deposit??!!

By: Larry

Larry — Tue, 16 Sep 2008 00:00:01 +0000

All of this is subject to the solvency of the FDIC, word is that they are nearing bankruptcy. Comments?