Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

[XXXNoahXXX]

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this is either a thinly veiled brag post

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ding ding ding!

[octaveshift]

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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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So, basically exactly what I said in the post directly above you.

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[maxtower]

Yes, I was typing mine while you were typing yours. I noticed after I clicked submit, that it was redundant. Sorry.

[spider]

Citibank & Bank of America could arguably be described as too big to fail (though this is always at the discretion of the feds). Nevada State Bank is not too big to fail...

Another option is just to buy Treasuries or a Treasury ETF. .05% is a pretty small probability. Probably tough to get that level of certainty and make any more money than you would in Treasuries (outside of spreading the money around to have FDIC protection).

But geez, if you are talking about a million or so, just hire somebody to take care of this!

[David Sklansky]

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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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You are way too sensitive. Everybody knows that I have a lot more than a million dollars so how was it bragging? And everybody knows that I know that putting money in the bank is one of the worst ways you can use it. But since I decided to do it purely because I am too lazy to go to any trouble at all for an extra 20K a year, it brought up the interesting question of whether the utterly horrible rate that BofA offers is even remotely related to the diminshment of risk.

I suppose I could have asked the question in that form rather than have embellished it with my personal situation. But that was just window dressing to make the post less dry. I realize you were just trying to be helpful, but as I said, the main reason for my post was that I was curious about the probability that banks will lose uninsured deposits. It was really a political question that justhappens to have a tiny effect on my life. If I heard anyone else on this forum put a million dollars in a bank CD, I would have them flogged.

[DcifrThs]

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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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You are way too sensitive. Everybody knows that I have a lot more than a million dollars so how was it bragging? And everybody knows that I know that putting money in the bank is one of the worst ways you can use it. But since I decided to do it purely because I am too lazy to go to any trouble at all for an extra 20K a year, it brought up the interesting question of whether the utterly horrible rate that BofA offers is even remotely related to the diminshment of risk.

I suppose I could have asked the question in that form rather than have embellished it with my personal situation. But that was just window dressing to make the post less dry. I realize you were just trying to be helpful, but as I said, the main reason for my post was that I was curious about the probability that banks will lose uninsured deposits. It was really a political question that justhappens to have a tiny effect on my life. If I heard anyone else on this forum put a million dollars in a bank CD, I would have them flogged.

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David,

i think we all know the real solution to the problem of you having $1million you don't want to have to worry about +/- 20k:



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Barron

[stephenNUTS]

David,

First of all I dont care if you have $200MM(and I dont want to get into embarassing you in a pissing contest ...lol)...but your first line of your reply blows your cover,and validates my response/POV:

Everybody knows that I have a lot more than a million dollars so how was it bragging

Word to the wise sir,
You may enjoy kissing YOUR mirror in the morning when you wake up...but I can see through the other side of the glass my friend...as you are NOT impressing some 17yr old HS kid here

Dont make a fool of yourself any longer than you already have.The average age/experience level/IQ on the WHOLE 2+2 website IS very low lately....but since I started posting/reading BFI the last few weeks....its been a pleasure to help,lead,guide as well as LEARN myself about any and all subjects pertinent to ones financial growth along with life type situations/questions

You can tell Mason & Co. to BLOW UP the other 20+ forums on this website for all I care,because no one would miss them in the least bit...EXCEPT the group I described above.The quality of posts/threads on 2+2 has diminished to ZERO....except for BFI in my opinion,and I hope each time I post/reply....I may help someone in some way,shape,or form

I have recieved more PM's since posting in BFI,than you could imagine.....and I LOVE responding to everyone of them...just I as "tried" to do with you in the original post

Your ignorant reply belongs in the NVG forum,where it would fit like a glove for Christ sakes

I actually dont know what else to say?
Stephen Feraca [img]/images/graemlins/confused.gif[/img]

***if you want to BAN me...please do so....you have the BADGE......so feel free if you cant handle brutal honesty.

[David Sklansky]

You are wrong. Period. The million bucks was mentioned only because it is way over the FDIC insurance. My personal situation was mentioned only to put a little flavoring on the question regarding banks chances of not paying off non insured deposits.

And I have never banned one person from this website.

[galmost]

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...making you many times more than a standard CD will return w/o risk!


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Could you please explain this anyway?

[David Sklansky]

I promise to close my eyes.