News Should you cash out your bank account?

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The discussion centers around the increasing failures of banks amid the current real estate crisis, raising concerns about the safety of deposits. Participants express anxiety over the potential loss of funds if a bank collapses, although it's clarified that federal insurance protects up to $100,000 per depositor in a bank account. This insurance, provided by the Federal Deposit Insurance Corporation (FDIC), mitigates the risk of losing money in savings accounts, making such losses unlikely unless both the bank and the government face severe financial distress. There is also mention of higher coverage limits for certain types of accounts, though specifics are uncertain. Overall, the conversation highlights the effectiveness of the FDIC in safeguarding deposits compared to historical banking crises.
waht
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It seems that more banks are starting to fail due to current real estate crisis. I suppose that banks might hide their financial problems until last minute as to not incite panic.

Is it possible that in the near future if a bank goes awack you will lose all the money that were put in the accounts there?
 
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There is insurance of up to half a million dollars on any single bank account. I believe that is backed by federal money. While getting that money may take time and effort you really don't have to worry about actually losing it unless both your bank and the federal government are close to belly up.
 
Thanks that's good to know. I guess it's not that risky. But it would be a big burden for the government though.
 
waht said:
Thanks that's good to know. I guess it's not that risky. But it would be a big burden for the government though.

Definitely. So far though I have only heard about mortgage companies folding. Hopefully the financial institutions are good enough at managing their losses to keep themselves safe.
 
TheStatutoryApe said:
http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation

Sorry, I was wrong. Apparently only one hundred thousand dollars is covered. That is likely to cover any amount of money I will ever have in a bank though.







i think its only 100k for regualr accounts, but I am pretty sure there is a 500k insured thind for certain kinds of accounts, but I am not sure which.../
 
waht, the FDIC was created to prevent precisely the problem that happened in 1929. That's one of the reasons why parallels to 1929 people have drawn don't really work - the risk of losing your money in a savings account is virtually nonexistant these days.

http://www.fdic.gov/
 

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