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Should you cash out your bank account?

  1. Jul 14, 2008 #1
    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?
     
  2. jcsd
  3. Jul 14, 2008 #2
    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.
     
  4. Jul 14, 2008 #3
  5. Jul 14, 2008 #4
    Thanks that's good to know. I guess it's not that risky. But it would be a big burden for the government though.
     
  6. Jul 14, 2008 #5
    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.
     
  7. Jul 21, 2008 #6






    i think its only 100k for regualr accounts, but im pretty sure there is a 500k insured thind for certain kinds of accounts, but im not sure which.../
     
  8. Jul 21, 2008 #7

    russ_watters

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    Staff: Mentor

    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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