Comments on: Leave Your Money in the Bank – It’s Safe

By: Ryan

Ryan — Thu, 26 Feb 2009 01:50:02 +0000

John: The FDIC was not around at the time, so if banks folded, the money went with it. Now the money in FDIC member banks is guaranteed up to $250,000 per account. Of course, you could still lose purchasing power from inflation or the US currency could lose it’s value, but that is another story.

By: John

John — Wed, 25 Feb 2009 22:23:14 +0000

in the great depression people were told to leave their money in the bank. many didn’t and many did. the ones that left it in lost it all!

By: fathersez

fathersez — Sat, 01 Nov 2008 09:36:08 +0000

Our bank deposits used to be insured to RM60,000 only (about 17,000 USD or so). Recently the Malaysian Government announced that they would g’tee 100%. (so has the Singaporean Gov’t).

I think this is a reaction to maintain financial stability after seeing some serious withdrawals happening.

After all even the biggest bank will fall if enough withdrawals happen.

By: Ryan

Ryan — Tue, 14 Oct 2008 14:01:30 +0000

LWS and Kristen: You both bring up good points. There is no need for people to make a run on banks – the money is covered. But doing that could have bad effects and bring down banks. Thankfully, we haven’t seen too much of this – mostly just isolated cases.

By: Kristen

Kristen — Tue, 14 Oct 2008 13:26:57 +0000

Didn’t these people watch “It’s a Wonderful Life?” But in all seriousness, I’m glad you addressed this topic. Panicking is the worst thing we can do.

There is a similar thing happening in England. People are withdrawing their money and putting them into Irish banks because Ireland has promised to insure a higher amount of money than the British banks. Our problems (with housing too) are being mirrored over there from what I’ve heard on the BBC.

By: LiveWellSimply

LiveWellSimply — Tue, 14 Oct 2008 06:21:25 +0000

When I found out about the $16 billion that people yanked from WAMU causing it to go down in flames, I was amazed and somewhat amused. Why go through all the trouble of transferring your money to a new bank which could just as easily disappear and which is also FDIC insured? These are crazy times alright.

By: Dividend Growth Investor

Dividend Growth Investor — Mon, 13 Oct 2008 20:10:43 +0000

I totally agree that as long as you have under $250K in an FDIC bank you shouldn’t take the money out. Why?

Because the risk of you losing all money outside the bank is much larger than the risk of losing the money if the bank fails. What if someone followed you on your way home.:-(

And yes, everything is cheap right now.. But today the market has started to correct things..

By: Donny Gamble

Donny Gamble — Mon, 13 Oct 2008 16:25:58 +0000

This is a very important post that we all need to read. Don’t take your money out of the bank or your retirement account. If you do, you will be losing out on possible the greatest sale of the century. Everything so cheap right now, that if you invest more money now, your investment will probably sky rocket within the next 30 years. Stocks are at the level where people feel that every company in the world is going to file for bankruptcy. Never going to happen.