I can't believe I'm having to post this: If you have money in a bank, how safe is it? [View All]

[DeepModem Mom]

We knew in December, '01, it would be bad, but did we have any idea Bush/Cheney/Rove would steer us into such disaster, on so many fronts?

WP: What to Know About Your Accounts
Wednesday, July 16, 2008; A10

Consumers have lots of questions about their bank accounts in light of the troubles at IndyMac and other institutions. Staff writer Nancy Trejos sought some answers.

Q If you have money in a bank, how safe is it?

AIf you have $100,000 or less in your name in any one bank, you have nothing to worry about. The Federal Deposit Insurance Corp., an independent agency of the federal government, will insure up to $100,000 per depositor per insured bank or savings association. That said, there are ways to protect more than $100,000 even if it's all stashed in one bank, depending on the account's ownership category. The most common categories are single accounts, joint accounts, certain retirement accounts and revocable trust accounts. If, for example, you have a single account under your name and a joint account with different names on it, you might be able get insured for more than $100,000. "There's a variety of scenarios that you can come up with to the maximum insurance for that person," said LaJuan Williams-Dickerson, a spokeswoman for the FDIC.

And if you have certain types of retirement accounts, you could get even more insurance. Individual retirement accounts, or IRAs, for instance, are insured up to $250,000 per depositor per insured bank.

Williams-Dickerson said each person's situation is different. She advises any consumer who wants to calculate his or her insurance coverage beyond $100,000 to go to http://www.fdic.gov and click on the Electronic Deposit Insurance Estimator, also known as EDIE. You can also call 1-877-ASK-FDIC.

If that's not reassuring enough, talk to the branch manager at your bank, said Bert Ely, a banking consultant in Alexandria. "Explain the situation and say, 'Here are my accounts, the type of structure they're in. Do I have any exposure?'"

What exactly does the FDIC insure? What does it not insure?...

What if you have uninsured funds? What happens when a bank fails? Do you have any hope of recovering that money?...

What happens immediately after a bank fails? Even if your money is insured, can you access it if the bank has closed? Will the ATMs work?...

Are there any warning signs that a bank is about to go under?...

What, if anything, can you do now to protect your money?...

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/15/AR2008071502669_pf.html