Bank Solvency and FDIC Worries

[condogrrl]

Thanks for the advice, waiting hawk. I am somewhat aware of this, but I need checking and savings accounts somewhere locally. Where do you suggest? 40K, for me, is not that much, although I’m not fond of losing money…

[waiting hawk]

You think you get FDIC money in a week? They have all sorts of nightmare FDIC stories on calculated risk right now.

How do you turn this bold off?

[waiting hawk]

You think you get FDIC money in a week? They have all sorts of nightmare FDIC stories on calculated risk right now.

How do you turn this bold off?

[waiting hawk]

You think you get FDIC money in a week? They have all sorts of nightmare FDIC stories on calculated risk right now.

How do you turn this bold off?

[bsrsharma]

condogrrl,

I saw 6 month T Bills are paying 4.88% APR. I think you can do better and be very liquid if you split your cash into $100K or smaller chunks and invest in top FDIC insured savings accounts. You will average above 5%. I can assure you FDIC is very prompt in repaying deposits in failed banks. You can consider them same as T Bills. Using the FDIC cover, I think you can expose yourself to higher risk and get better return. If you win, you keep. If you lose, FDIC makes you whole. What is there to complain?

[bsrsharma]

condogrrl,

I saw 6 month T Bills are paying 4.88% APR. I think you can do better and be very liquid if you split your cash into $100K or smaller chunks and invest in top FDIC insured savings accounts. You will average above 5%. I can assure you FDIC is very prompt in repaying deposits in failed banks. You can consider them same as T Bills. Using the FDIC cover, I think you can expose yourself to higher risk and get better return. If you win, you keep. If you lose, FDIC makes you whole. What is there to complain?

[bsrsharma]

condogrrl,

I saw 6 month T Bills are paying 4.88% APR. I think you can do better and be very liquid if you split your cash into $100K or smaller chunks and invest in top FDIC insured savings accounts. You will average above 5%. I can assure you FDIC is very prompt in repaying deposits in failed banks. You can consider them same as T Bills. Using the FDIC cover, I think you can expose yourself to higher risk and get better return. If you win, you keep. If you lose, FDIC makes you whole. What is there to complain?

[lniles]

High yield money market is not covered?

I have SDCCU and Wamu accounts. SDCCU has high-yield checking which is liquid and pays 5%. Their cd’s pay 5.45%, and they have the best rates I could find locally.

I’m still thinking about one of the CDAR banks.

http://www.cdars.com/

[lniles]

High yield money market is not covered?

I have SDCCU and Wamu accounts. SDCCU has high-yield checking which is liquid and pays 5%. Their cd’s pay 5.45%, and they have the best rates I could find locally.

I’m still thinking about one of the CDAR banks.

http://www.cdars.com/

[lniles]

High yield money market is not covered?

I have SDCCU and Wamu accounts. SDCCU has high-yield checking which is liquid and pays 5%. Their cd’s pay 5.45%, and they have the best rates I could find locally.

I’m still thinking about one of the CDAR banks.

http://www.cdars.com/

[bsrsharma]

You think you get FDIC money in a week?

I very much think so. The instant the bank can't pay you, it is considered a failure and if I remember from S&L crisis days, they arrived within 2 to 3 business days and gave out cheques. Of course, you may have to consider blizzards etc., but a week seems very long.

 

[bsrsharma]

You think you get FDIC money in a week?

I very much think so. The instant the bank can't pay you, it is considered a failure and if I remember from S&L crisis days, they arrived within 2 to 3 business days and gave out cheques. Of course, you may have to consider blizzards etc., but a week seems very long.

 

[bsrsharma]

You think you get FDIC money in a week?

I very much think so. The instant the bank can't pay you, it is considered a failure and if I remember from S&L crisis days, they arrived within 2 to 3 business days and gave out cheques. Of course, you may have to consider blizzards etc., but a week seems very long.

 

[bsrsharma]

High yield money market is not covered?

Usually so, unless they clearly identify otherwise. The SDCCU high yield Checking account is covered. Usually, anything with the words Savings or Checking is covered. But always read the fine print or ask. I have never heard of a bank misleading to invest in non-FDIC accounts. (Customer stupidity is a different story)

[bsrsharma]

High yield money market is not covered?

Usually so, unless they clearly identify otherwise. The SDCCU high yield Checking account is covered. Usually, anything with the words Savings or Checking is covered. But always read the fine print or ask. I have never heard of a bank misleading to invest in non-FDIC accounts. (Customer stupidity is a different story)

[Author]

Posts