POLL: For US "bank crisis" what would YOU do?

the idea is that bank is the first domino

 

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I hope we all agree on how we feel bout bankers

 

Does this mean that checking accounts that pay interest aren't covered, or that they aren't covered to $250k?

 

Man you got the compass one, lucky dog.

 

I think they are covered up to the original $100k, but not for the additional insurance that was put in place a little while back.

Not that I have > $100,000 in my savings account, but what I find funny is that if I did, it wouldn't be covered because my savings account pays .05%. Yes, you read that correctly. Not 5%, and not .05, but .05%. Five one hundredths of one percent. (We don't have an account there for the yields obviously)

 

That low interest rate is not uncommon. Most checking accounts pay paltry interest, if any at all.

I have had what is called a "Reward Checking" account for close to 10 years now. Back in the day when I opened it, it paid 5% interest, had no minimum balance, and no account service fees. ATM transactions were reimbursed as well. Requirements were only to get your statement online, have a direct deposit monthly, and 10 check-card transactions a month. With interest rates falling, the interest rate has fallen over the years to 3% today, but that's still head-and-shoulders above most accounts, including CDs, and my money is entirely liquid.

If you're interested, do a google search for "Reward Checking" accounts and you'll find quite a few banks still offer them.

 

It would be hard to switch. We get good benefits through our bank, free checking, free checks, ATM reimbursements, boxes of coins for roll searching, good rates on our SDB, etc. Plus, we have so many auto-payments and other accounts tied to our checking: Direct deposits, mortgage, car insurance, trash, water, power, gas, credit card, PayPal, etc.

 

If there is a banking crisis, and you're pulling your money out to buy PM, I'll sell you mine. Be prepared to pay $100 each for my ASEs, or 5 grand for my gold ones. In the words of JP Morgan "I buy when people are selling and I sell when people are buying." I moved most of my 403B into realestate in 2009 and have been earning about 12% a year since. I am now rolling my hands and practicing the "evil laugh" like they taught me at Bohemian Grove.

 

The $250,000 coverage does apply to interest bearing accounts.

That poster actually had it backwards. It is possible to have unlimited coverage of non-interest bearing accounts. But there are stipulations on the type of account.

 

I think they will do a "haircut" soon enough, and that's why keeping money in the bank is not a good move. May as well invest in rice and beans.

 

Noon 3/29/2013:
540 views
29 Comments
28 Votes

60% CTers voting would WITHDRAW all bank funds and or BUY PMs in a bank holiday.
~33% CTers wouldn't worry and buy (any/more) PMs, in a bank holiday.

 

I didn't vote as there was no appropriate answer.

PM Reserves, Cash, and Barter: I've already withdrawn all funds from my bank years ago that I don't need to pay bills. I am prepared with metals, cash, and an array of supplies. Whether the bank reopens is of no consequence to me. I will not need to spend any money as I already have what I need. Any money lost would be the equivalent of what I owe them.

 

I couldn't vote either.

I don't think you could withdraw in a banking crisis.

 

In a hurricane, you don't get to say "I don't like the options, here!" You MUST do something - or choose to 'do nothing.'

In the hypothetical, likewise, you choose or you don't count. You don't vote, you don't count! No one cares what you think (non-participation/opt-out = irrelevance) by not-answering.

 

Ken Keeps his money in his shoes and never gets his feet wet:greensmile:

 

This has been my understanding also that the $250,000 coverage does apply to interest bearing accounts.. for both FDIC (banks) and NCUA (credit unions).

 

What does FDIC deposit insurance cover?
FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA), time deposit such as a certificate of deposit (CD), or an official item issued by a bank (such as a cashier's check or money order).
FDIC insurance covers depositors’ accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank’s closing, up to the insurance limit.
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.
The FDIC does not insure safe deposit boxes or their contents.
The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government.

 

We are coming up on the 2 year anniversary of tornados that knocked our power out for 6 days here in Huntsville, AL. We were fortunate (my family and friends), no damage to our homes etc and we made it through. This was an eye opening experience for me....once everything got back to normal, I assessed the situation and started getting things together so I would be able to better deal with a similar situation if it happened again.

Let me give everyone some advice:
Get some cash, 20$ bills and smaller.
Buy some canned food...spaghettios etc, whatever you and your family will eat
Buy some bottled water
If you have pets, keep some extra food for them too

This list is just some basics...you get the idea. I bet there are people in Cyprus who could have used this advice.