Comments on: Your Money in the Bank is Safe http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Jo http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-190043 Jo Mon, 09 Mar 2009 23:44:32 +0000 http://www.consumerismcommentary.com/?p=3459#comment-190043 Oh yeah, just one thing about bankrate.com and any rating agencies for that matter. Is there any reason that we can rely, or trust them any more than we do the institutions they rate? Bankrate.com have put GMAC pretty close to the top of their list for CD rates and security, yet you need to remember it's association with GM. What a lot of this boils down to is peace of mind. I liken the situation to swimming in the ocean. The rational side of your mind tells you the odds of a shark attack are very low, but somehow those small odds seem to evaporate as you imagine the horror of such an event. It's human instinct and my advise is always follow it. Oh yeah, just one thing about bankrate.com and any rating agencies for that matter. Is there any reason that we can rely, or trust them any more than we do the institutions they rate? Bankrate.com have put GMAC pretty close to the top of their list for CD rates and security, yet you need to remember it’s association with GM. What a lot of this boils down to is peace of mind. I liken the situation to swimming in the ocean. The rational side of your mind tells you the odds of a shark attack are very low, but somehow those small odds seem to evaporate as you imagine the horror of such an event. It’s human instinct and my advise is always follow it.

]]> By: Jo http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-190042 Jo Mon, 09 Mar 2009 23:33:52 +0000 http://www.consumerismcommentary.com/?p=3459#comment-190042 The question of whether our money is safe will likely continue until we are out of the woods. The equation, however, is always risk vs rewards, and how much you need the rewards. The more dependent you are on interest income the more compelled you may be to chase rates.The FDIC is talked about as if it is unshakable, and invulnerable, but it wasn't that long ago that the same could have been said of AIG, Fannie Mae, etc, etc. There are no cast iron guarantees, just what people tell you to keep the game of confidence in play. If you don't need the income, I'd stay with the safest bank you can find, meaning one that is open about its lack of exposure to derivatives, remain under FDIC limits, spread the risk, and look into US Treasuries. Keep as liquid as you can so you can move funds quickly, check the news, and internet every couple of weeks. If you do need the income, it may be better to cut costs such cable TV, hunt for lower insurance (bigger deductibles), switch supermarkets, don't buy consumer goods and eat at home. The flip side is you will learn to enjoy books, and learn to cook, and have conversations, and remember how to ride a bike. It will be very good for your soul and your wallet. The question of whether our money is safe will likely continue until we are out of the woods. The equation, however, is always risk vs rewards, and how much you need the rewards. The more dependent you are on interest income the more compelled you may be to chase rates.The FDIC is talked about as if it is unshakable, and invulnerable, but it wasn’t that long ago that the same could have been said of AIG, Fannie Mae, etc, etc. There are no cast iron guarantees, just what people tell you to keep the game of confidence in play. If you don’t need the income, I’d stay with the safest bank you can find, meaning one that is open about its lack of exposure to derivatives, remain under FDIC limits, spread the risk, and look into US Treasuries. Keep as liquid as you can so you can move funds quickly, check the news, and internet every couple of weeks. If you do need the income, it may be better to cut costs such cable TV, hunt for lower insurance (bigger deductibles), switch supermarkets, don’t buy consumer goods and eat at home. The flip side is you will learn to enjoy books, and learn to cook, and have conversations, and remember how to ride a bike. It will be very good for your soul and your wallet.

]]> By: Michael http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-177369 Michael Fri, 29 Aug 2008 19:22:26 +0000 http://www.consumerismcommentary.com/?p=3459#comment-177369 Bank rate offers a service to check the safety of your bank at http://www.bankrate.com/brm/safesound/ss_home.asp Bank rate offers a service to check the safety of your bank at http://www.bankrate.com/brm/safesound/ss_home.asp

]]> By: the hobbit http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-167089 the hobbit Thu, 24 Jul 2008 11:37:23 +0000 http://www.consumerismcommentary.com/?p=3459#comment-167089 You are right that it is bad for the media to spread panic. But is it right to fail to pass a warning? It took fully 10% of the FDIC available funds to repay Indy mac depositors. If there are 10 or 20 more banks in trouble, it could overwhelm the insurance facilities funds. People ought to wake up to the rampant fraud waste and crony ism that characterizes the government. You are right that it is bad for the media to spread panic. But is it right to fail to pass a warning?
It took fully 10% of the FDIC available funds to repay Indy mac depositors. If there are 10 or 20 more banks in trouble, it could overwhelm the insurance facilities funds.

People ought to wake up to the rampant fraud waste and crony ism that characterizes the government.

]]> By: Andrew http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-166996 Andrew Thu, 24 Jul 2008 03:36:05 +0000 http://www.consumerismcommentary.com/?p=3459#comment-166996 There's a slightly confusing calculator on the FDIC website if you want to plug your account info into it and see what's covered: http://www.fdic.gov/edie/ There’s a slightly confusing calculator on the FDIC website if you want to plug your account info into it and see what’s covered: http://www.fdic.gov/edie/

]]> By: Fred http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-166591 Fred Tue, 22 Jul 2008 17:46:11 +0000 http://www.consumerismcommentary.com/?p=3459#comment-166591 Eh? Do you mean some entity of GMAC other than GMAC Bank? Because GMAC Bank is FDIC-insured like any other bank. Says so right here (bottom of page): http://www.gmacbank.com/banking-online/why-gmac-bank.html Eh? Do you mean some entity of GMAC other than GMAC Bank? Because GMAC Bank is FDIC-insured like any other bank. Says so right here (bottom of page):

http://www.gmacbank.com/banking-online/why-gmac-bank.html

]]> By: UH2L http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-166585 UH2L Tue, 22 Jul 2008 17:10:28 +0000 http://www.consumerismcommentary.com/?p=3459#comment-166585 Banks and credit unions are insured and you can get more than $100,000 coverage per person with joint accounts. What you need to watch for are Money Market Accounts from companies. I have a GMAC Money Market Account which pays great interest, but it's not insured. If GMAC goes out of business, I'm not sure what would happen to my money, so I took a lot out of that account and put it in insured, lower-returning accounts. Banks and credit unions are insured and you can get more than $100,000 coverage per person with joint accounts.

What you need to watch for are Money Market Accounts from companies. I have a GMAC Money Market Account which pays great interest, but it’s not insured. If GMAC goes out of business, I’m not sure what would happen to my money, so I took a lot out of that account and put it in insured, lower-returning accounts.

]]> By: Flexo http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-166545 Flexo Tue, 22 Jul 2008 13:49:39 +0000 http://www.consumerismcommentary.com/?p=3459#comment-166545 Laura: The ability to cause panic amongst the public is a dangerous power... Robin: CDs are insured by the FDIC like other deposit accounts. Here's <a href="http://www.fdic.gov/consumers/consumer/information/fdiciorn.html" rel="nofollow">an official source</a> that you can show your boyfriend's father if you're looking for an "In Your Face!" moment. I'll be exploring the facts about FDIC protection in an article going live in a few hours. Laura: The ability to cause panic amongst the public is a dangerous power…

Robin: CDs are insured by the FDIC like other deposit accounts. Here’s an official source that you can show your boyfriend’s father if you’re looking for an “In Your Face!” moment.

I’ll be exploring the facts about FDIC protection in an article going live in a few hours.

]]> By: Robin http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-166533 Robin Tue, 22 Jul 2008 13:27:39 +0000 http://www.consumerismcommentary.com/?p=3459#comment-166533 Are CDs covered as well? My boyfriend's father keeps insisting they are not. Are CDs covered as well? My boyfriend’s father keeps insisting they are not.

]]> By: Laura http://www.consumerismcommentary.com/2008/07/22/your-money-in-the-bank-is-safe/#comment-166503 Laura Tue, 22 Jul 2008 11:58:28 +0000 http://www.consumerismcommentary.com/?p=3459#comment-166503 My husband and I double checked with our banks and we're going to keep depositing as normal and paying down debt. I think the media can do more harm than good when they sensationalize the impact. My husband and I double checked with our banks and we’re going to keep depositing as normal and paying down debt. I think the media can do more harm than good when they sensationalize the impact.

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