The State of the Banking System
Is your money safe?
What is the state of your bank? Is your bank financially sound? Will your bank be around for another year or is it a prime takeover candidate? Is your money really safe? Should you be losing sleep over your bank deposits? It is possible to open a free checking account? Which banks are financially sound?
Fortunately this is not the 1930s. Back then many of the regulations that are currently in practice weren’t even being considered. Back in the 1930s banks didn’t have FDIC insurance to protect the deposits of its customers. Credit Unions didn’t have the NCUSIF to insure the deposits of its members. In the 1930s if your bank went under, all you could do was find a shoulder to cry on. There was no other recourse to get your money back. In the 1930s when your bank folded, all you could do was kiss your money goodbye.
In today’s society, banks and credit unions insure the deposits of each customer up to $100,000. For a limited time the deposit insurance has been raised to $250,000 per account. This increase will be extended through December 31, 2013. This increase was orchestrated to bolster confidence in the banks and it is a fantastic idea.
Don’t be suckered into taking your funds out of your bank for fear that you will never see it again. Just make sure that you adhere to the policies of each bank. Make sure that you only deposit that amount that you are insured for in each account. If you need to…open multiple savings accounts with different banks. Your money is safe because we have learned from the past, and that is a very good thing.