Any financial gurus out there? I have a question, please.

[in_cog_ni_to]

What if the Government shutdown going to do to the financial markets? Banks, specifically. We took all of our money out of the stock market years ago after losing a big chunk of it and have it in a savings account.

Should we take money out of our savings account and just stick it in a save place until this all blows over or is it safe in a regular savings account at the bank? We don't have much, but we are scared to death to lose what we do have. Are banks going to be safe?

edit: spelling.

[rucky]

1. I'd keep it in savings.

you may actually earn interest on it for once.

[nomb]

2. Banks are safe in this regard. As would be bondholders, this would be a technical default and ...

bad because we would have failed where we never failed as a nation before.


We'd still be virgins, we'd just be considered really slutty now with the market no longer trusting that if we go out again we won't more easily go all the way next time.

[PoliticAverse]

3. Your < $250,000 deposit in an FDIC insured bank will be fine. n/t

[in_cog_ni_to]

4. Thank you to all of you who responded!

We feel better now. :hi: Thank you!

[SheilaT]

5. I would not be the least bit surprised

if the stock market shows a whole lot of volatility for a while, and then stocks go up and up. Of course, I could be completely wrong on that second half.

Anyway, as others have said, banks are very safe these days. If you do have more than whatever the maximum that the FDIC currently insures, it would always be a smart thing to spread that money around to different institutions or in different kinds of accounts. Here's a link you might find helpful, no matter how much or little money you have in savings: http://www.fdic.gov/deposit/deposits/insured/basics.html

It's also pretty much a truism of the market that you should be diversified, and in general leave your money alone for the most part. It's taking it out after a downturn in the market, and then putting it back in when the market goes back up that keeps investors from making much money.

[A HERETIC I AM]

6. One of the reasons the banks are paying such shitty interest rates these days....

is that you are not alone. Millions and millions of other Americans did the same thing and the banks are literally FLUSH with cash. Since CD rates and demand deposit rates are, like so many other things, affected by supply and demand, there is no demand on the part of banks to entice you to deposit cash - they already have it! So they have no incentive to offer much more than the paltry twelve bucks per thousand that is the average nationwide on 12 month paper.

There is NO way that Republicans or the Democrats will allow a bank to fail in such a way that the depositors will lose their money.

You have nothing to worry about. The FDIC will continue to do its job.

What you should be REALLY pissed about is that you didn't buy Ford at a buck fifty when you had the chance.