Are Your Bank Accounts Safe?
We have an exciting new guest blogger joining us on House Calls. Tracy Davidson, consumer reporter for WCAU in Philadelphia, is going to be blogging weekly about your money and smart ways to both save and spend it. If you live in the Philadelphia area you may have seen Tracy on All That & More with Tracy Davidson. This week: Tracy tells you how to find out if your bank accounts are safe.
Are Your Bank Accounts Safe?
by Tracy Davidson
The video of people lined up to get their money out of Indymac made me think of the "run on the bank" in the movie It's a Wonderful Life. Unfortunately it's real life for more and more customers. Estimates are that this "crisis" could take down many more banks. So what should you do? Don't panic! And don't think that stuffing your mattress is the answer!
Is your bank FDIC insured?
First: Make sure your financial institution is FDIC insured. How do you do that? Banks and financial institutions post FDIC signs at their locations. Or you can call 877-275-3342 or check online to see if your bank is FDIC insured.
What exactly does it mean if a bank is FDIC insured? The Federal Deposit Insurance Corporation is an independent agency of the federal government. It was created in 1933 to address the problem of failed banks. The key fact in this history lesson: Since January 1934 no depositor has lost a single cent of insured funds as a result of a bank failure.
How much are you "insured" for? Basically you're insured up to $100,000 per depositor, per insured bank, which includes principal and accrued interest. So ask yourself which types of accounts you have with your bank—checking, savings, trust CDs? You'd be covered for up to $100,000 for all of those accounts, combined. Now, could you be insured for more? Yes, for instance if you have a checking account in your name and another checking or savings account that is in both your and your husband's names. Different ownership categories are separately insured. IRAs are insured separately for up to $250,000, but other investment products like stocks, mutual funds, bonds or annuities are not covered, even if purchased at an insured institution.
Check up on your bank
Still curious about whether your bank will be the next one in the headlines? The FDIC has a list of 90 banks that could be in danger of failing but, unfortunately, that list is not available to the public. You can, however, check Bankrate.com. It has a rating system where you can plug in your bank's name and check out its relative financial strength.
Bottom line: If your bank is insured, you can rest easy. The FDIC guarantee is a direct obligation of the United States Government. So as long as the government is in business, your FDIC-insured money is safe.
Added note: Have your money in a credit union? They are insured by the National Credit Union Administration.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
Are Your Bank Accounts Safe?
by Tracy Davidson
The video of people lined up to get their money out of Indymac made me think of the "run on the bank" in the movie It's a Wonderful Life. Unfortunately it's real life for more and more customers. Estimates are that this "crisis" could take down many more banks. So what should you do? Don't panic! And don't think that stuffing your mattress is the answer!
Is your bank FDIC insured?
First: Make sure your financial institution is FDIC insured. How do you do that? Banks and financial institutions post FDIC signs at their locations. Or you can call 877-275-3342 or check online to see if your bank is FDIC insured.
What exactly does it mean if a bank is FDIC insured? The Federal Deposit Insurance Corporation is an independent agency of the federal government. It was created in 1933 to address the problem of failed banks. The key fact in this history lesson: Since January 1934 no depositor has lost a single cent of insured funds as a result of a bank failure.
How much are you "insured" for? Basically you're insured up to $100,000 per depositor, per insured bank, which includes principal and accrued interest. So ask yourself which types of accounts you have with your bank—checking, savings, trust CDs? You'd be covered for up to $100,000 for all of those accounts, combined. Now, could you be insured for more? Yes, for instance if you have a checking account in your name and another checking or savings account that is in both your and your husband's names. Different ownership categories are separately insured. IRAs are insured separately for up to $250,000, but other investment products like stocks, mutual funds, bonds or annuities are not covered, even if purchased at an insured institution.
Check up on your bank
Still curious about whether your bank will be the next one in the headlines? The FDIC has a list of 90 banks that could be in danger of failing but, unfortunately, that list is not available to the public. You can, however, check Bankrate.com. It has a rating system where you can plug in your bank's name and check out its relative financial strength.
Bottom line: If your bank is insured, you can rest easy. The FDIC guarantee is a direct obligation of the United States Government. So as long as the government is in business, your FDIC-insured money is safe.
Added note: Have your money in a credit union? They are insured by the National Credit Union Administration.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
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