Bank Failures (Public Service Announcement)

[stoxtrader]

There are ways to structure your accounts so that you are insured for more than 100k, some are quite easy. Anything my wife cosigns on with me is automatically 200k, and I have setup accounts with my children as beneficiaries so we are up to 400k in FDIC coverage.

details here:

http://www.fdic.gov/deposit/deposits/insuringdeposits/

[mo42nyy]

no kids no wife
anything else you can do?

[MiltonFriedman]

Thanks, Nate ... The article seems to say that ING picked up the deposits.

[Grasshopp3r]

There will not be a widescale bank failure problem this time around due to the securitization markets. This is an isolated incident, in my opinion. However, the $100k FDIC insurance limit should be respected and not exceeded. There are trust accounts for larger accounts.

[Vega33]

[ QUOTE ]
I thought everyone knew the $100k thing. Why would you keep that much money in a bank anyways? I keep several thousand in the "bank" at most, and the rest consistently gets shipped into a money-market paying ~5%. My bank only pays like 1.25%.

[/ QUOTE ]

The 100k include CDs deposited in banks- I've got about 150k deposited in 2-4 year CDs at Emigrant Direct and ING Direct banks. They each pay around 5%, which I like better than money market accounts, because the money market rates are subject to change, such as if the Fed lowers interest rates (which it just did). The CD rates are locked in- the downside of course is that you can't get at the money without paying a penalty, but that's a positive in my view because I keep my non-bankroll investment money there. I don't want to be tempted to touch that money in a downswing.

[cts]

having a lot of $ in my esavings account is a bad idea? should i just open more w/ different online banks?

[RodeoBlue]

[ QUOTE ]
having a lot of $ in my esavings account is a bad idea? should i just open more w/ different online banks?

[/ QUOTE ]

Or give it away to charity.

[Vega33]

[ QUOTE ]
having a lot of $ in my esavings account is a bad idea? should i just open more w/ different online banks?

[/ QUOTE ]

I wouldn't keep more than 100k in any particular bank. Sure, the odds off a well-known bank like Emigrant going broke are small, but why take the chance?

That's why I have accounts with Emigrant Direct and ING Direct- both pay good rates (though not as good after the Fed lowered the fed funds rate 50 basis points) and have good reputations for stability and security.

I have less than 200k so I don't need a third bank, but for someone like you with more $$, I'd maybe look into Metlife Bank,

http://www.metlifebank.com

or

http://www.discoverbank.com/

http://www.gmacbank.com/index.html

or

http://www.allstatebank.com

those have a good reputation for paying good rates and are associated with large, reputable (at least in a solvency since of the word) companies.

But first I'd look at Emigrant Direct and ING Direct- those are the big ones for a reason.

[rsigley]

you can also buy additional insurance through a third party for amounts >100k

[linuxrocks]

Quick question: How safe/well known is ING? I can move it to Wells Fargo, if required.