ACK! My bank rating is SHIT. What should I do?

[nonconformist]

I've seen a few people suggest checking your bank rating at Bankrate.com. I am horrified to learn that the Bankrate.com rating is two stars and the Safe & Sound CAEL Rating is 4. Apparently, that's pretty fucking bad.

We haven't been really happy with this bank anyway (local bank) due to customer service issues, and now this. We don't have very much money, but still, it's all we have, which makes it even scarier. We have just about everything we can set up automatically at this bank (deposits, bills) which makes it kind of a pain in the ass to change, but I'm guessing it would be wise to close this account and open up a new one at a bank with a higher ranking? What say you financial gurus? I'll admit I'm not very knowledgeable about this kind of stuff.

And what about our piddly 401k? We're only 35, so I guess the best thing to do is just let that ride?

[ailsagirl]

1. Sorry to hear that-- do you have to be a member to find out?

[sandnsea]

6. bankrating.com

I checked mine and my kids last week.

[nonconformist]

7. Nope, just go to Bankrate.com and look up your bank. nt

[morillon]

8. Just go to this link...

http://www.bankrate.com/brm/safesound/ss_home.asp

[ailsagirl]

12. Thank you--

[MidwestTransplant]

2. Just keep your deposit under 100K and your are fine. Just make sure it's FDIC insured bank.

[nonconformist]

5. It's well under 100k and the bank is FDIC insured, however....

I just watched this clip at CNN http://www.cnn.com/video/#/video/business/2008/09/24/am.lawrence.savings.safety.net.cnn about how people lost millions when a bank went under in Nevada, even though it was all insured. This woman lost 20k that took her 27 years to save, and she "may" get a percentage of that back "maybe, someday". Very scary.

[morillon]

9. That's true, but...

...if your local bank fails the same week as someone like, say, WaMu, you might be looking at a delay. I wouldn't keep my money in any bank with less than average ratings for just that reason.

[godai]

3. Your funds are insured up to $200,000 for a couple.

If you have less than that, should be no risk of losing any money. If more than that, more some to another bank, to keep under the limits.

[sandnsea]

4. Move your money

Or make sure you have cash for a few days if the bank goes under. I also think you should see what your 401K is invested in, if you have any control over it. I think the people who don't take control over their finances are the ones who end up broke and on Oprah. Then, the same people who said investing is for the long term, will criticize you for not taking more responsibility for your investments.

Get off of DU and get on the phone and protect yourself.

[Demobrat]

10. FDIC insurance covers your deposits.

So they say. But if your bank goes under it could take weeks or months to get your money back. If closing your account and moving to another bank is too much trouble, at least open an account somewhere safe and start shifting your savings. This is no time to have all your eggs in one, leaky basket.

[morillon]

11. I'd move.

It wouldn't hurt to have your money in two different banks, both of which have at least average ratings. That way, if one goes under and it takes a little while for things to get sorted out, you'll still have money.

[Better Believe It]

13. Move Your Money Yesterday!

Move it all into a bank with a rating of at least 4 stars that FDIC insured.

That's the smartest thing to do and do it quickly.

Someone reported on DU a few days ago that a bank rated with 3 stars failed, so I'd say nothing less than 4 stars should be used.

[jemsan]

15. I moved my $$$$ in August from Wamu to B of A...

You're right it is a big pain in the ass to switch everything but it's sure nice to sleep better at night!! The B of A is further away but I discovered yesterday they are opening up a branch a mile away! Cool. Do it and do it now.

[Catherine Vincent]

14. My two banks are a 2 and my Credit Union is a 1 (Superior).

I guess I can smile.

[Selatius]

19. Yeah, my credit union has 4 out of 5 stars and a CAEL rating of 2 with 1 being best.

It's a good place to hold money. That, and the fact that with a credit union, depositors have voting rights unlike a traditional privately-owned bank where you need shares to have a voice in the decision-making process.

[fla nocount]

16. Patience, wait, new rules will turn you to solid gold.

Click here if not re-directed in 30 sec.s

[bikebloke]

17. My bank had dropped to the lowest rating.

So I started shopping around. A week later, it had recovered, moving up to two stars and a 4 rating. In the explanations, they say most banks are in that category. Though the rating is still lower than when I first joined them. Hopefully, it will stay solvent until I return from my trip next month. Then the big hassle of changing banks.

[Selatius]

18. Switch to a new bank. Besides, you said the bank treats you like shit.

Giving the ratings, the bank might be up what is known as "questionable accounting practices." Or else they might be THAT bad at managing your money to deserve a 4 rating with the lowest being a 5.