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  #21  
Old 11-16-2007, 12:21 PM
AvivaSimplex AvivaSimplex is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

Many places also offer free SIPC insurance to supplement FDIC insurance. Generally this insures you for between $500k and $10M, and is quite reliable. I would check the fine print for whichever place you want to deposit to see if they provide this added insurance. I would think Charles Schwab or other brokerages would be most likely to.
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  #22  
Old 11-16-2007, 01:04 PM
SteveOMS SteveOMS is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

I would NOT put your money into Washington Mutual. Look at their stock price and default swaps....

Bank of A and citi are both safe. I'd say Schwab is safe as well, but thats a money market and not a CD though right? Different risks there.

My original answer was the best one for the lazy man who doesn't want to think about it or worry about default risk. The extra insurance is insanely cheap and easy to get, just have to ask for it when you walk in. In this environment the bank may even pay it for you.

SteveOMS
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  #23  
Old 11-16-2007, 02:17 PM
dc_publius dc_publius is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?


Banks are rated by people at Moody's and S&P. You can check the rating for considered institutions and go with the best one.

There is also Bank Rate's rating: http://www.bankrate.com/brm/safesound/ss_home.asp I don't know if Bank Rate's rating is just a gimmic or a solid assesment (never heard of it) but Moody's and S&P data is what you should be looking at.
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  #24  
Old 11-16-2007, 02:24 PM
ShineOn ShineOn is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

Don't pay for insurance. Many Banks offer programs where they will take your money and give anything over $100K to various other banks (keeping your deposits under $100K at each bank). The Bank is part of a network and will get money back in return. Many will do this for free, especially with the bargaining leverage you will have with $1M +.

The Bank of course pays to be part of this network, but in return they are able to satisfy their high net worth clients which is worth much more than the few bps they charge.

I work at a Bank and we use CDARS. Read more about it here:

http://www.cdars.com/

Make sure you give them a list of all the institutions you have money at currently. They can select which institutions not to send your $ to.
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  #25  
Old 11-16-2007, 02:27 PM
stephenNUTS stephenNUTS is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

After I attempted to give some sound advice,and reply to your post....your reply of "I am too lazy to figure out where to put my MILLION dollars"...this is either a thinly veiled brag post..or just plain STUPIDITY

There are PLENTY of 2+2 members in BFI,that would LOVE to have "your million $$$ problem"...and would digest any useful information this forum may produce from the many intelligent posters.

This is a "NICE" example you are setting(LOL)... for the younger/novice investors,as I would expect MUCH more from you.If you can compute,compare or even care about your <.05% loss worry.....what was the purpose of your post in the first place?

Just drive to the nearest BOA branch...tell them how lazy you are.....deposit your $1MM in ONE five year CD at whatever interest rate they give you,....and "hope" your principle + interest is still there in 2012

I am pretty shocked right now,as I guess I would expect more from someone like you in BFI

I am also THRILLED I didnt give you the sound advice I was sincerely going to suggest prior to me asking you some simple questions in my previous post...making you many times more than a standard CD will return w/o risk!

Very Disappointed,
Stephen Feraca [img]/images/graemlins/confused.gif[/img]
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  #26  
Old 11-16-2007, 02:39 PM
CrushinFelt CrushinFelt is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

[ QUOTE ]
I appreciate the advice but the posters here do not understand the degree of my laziness. Let's simplify the question.


[/ QUOTE ]

lol, douchebag
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  #27  
Old 11-16-2007, 02:44 PM
nadical nadical is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

stephen

I used to think you were a douche from reading hsnl and all that garbage but your posts on the forum are awesome.
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  #28  
Old 11-16-2007, 03:17 PM
howzit howzit is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

none of those banks will default in the short term. However, you have enough wealth to get financial planning at a private banking arm of one of the major wall st firms. Goldman, Deutsche, Merrill, JPMorgan, UBS.

The first thing they will tell you is that CDs are a joke. and a 5 YR CD is insane. They are illiquid and return less than the most basic of money market funds.

but if you're lazy and OK with returns that can barely beat inflation PRE TAX, it's all on you.

and to answer your questions, any of those banks are fine and don't face any bankruptcy issues. Schwab and BOA are the best names on that list.
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  #29  
Old 11-16-2007, 05:01 PM
octaveshift octaveshift is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

Correct me if I'm wrong, but doesn't SIPC protection apply for CDs and other securities? At Etrade, it covers up to $500,000 per account, and FDIC covers $100,000 in cash. Additional insurance is available for a small fee, I believe...

BofA is SIPC insured:

" Banc of America Investment Services, Inc. is a registered broker-dealer and member FINRA(The Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation). Both BAI and BAISI are licensed insurance agencies and nonbank subsidiaries of Bank of America, N.A."
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  #30  
Old 11-16-2007, 05:24 PM
maxtower maxtower is offline
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Default Re: Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

I would make sure you have some governmental insurance. Due to the uncertainty of the current credit environment, you don't want to be left holding the bag if the bank you chose fails. Even some of the big ones are suspect right now. Check out this article.
http://www.bloomberg.com/apps/news?p...d=aEUtlgwzL_qc

What this means is that you either need to open up 10 different accounts for $100k each or buy some kind of supplemental insurance from the bank that you want to use.

One good option might be to open a trading account at a place like Etrade where the bank is connected to the trading account. You invest 500k into a super short term bond fund or similar, and receive SIPC protection up to 500k. Then sweep the interest payments/dividends into your Etrade high yield savings account which is FDIC insured up to 100k. That covers 600k and gives you ATM access to 100k of it through local Etrade ATMs. If you need more than 100k, just sell some of the bond funds that day.

I am not sure of another brokerage that does this, but I am sure one exists. In this way you would be fully gov't insured and fairly liquid with only two accounts.
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