How safe is SDCCU

[El Jefe]

IIRC, you can have up to 100K of single accounts insured AND additionally contribute up to 100K of FDIC insurance toward a joint account, totalling 200K/SSN.

IE

You(single acct): 50K checking + 50K CD

you + wife(joint acct): 200K CD

wife(single acct): 100K CD

All Insured.

[edna_mode]

Also, I would be careful about going over $100,000 for the whole *household*, in case of death. I had heard about a widow nearly losing $100,000 in her husband’s name when a bank failed on the day her husband died. Since she had $100,000 already in her name, when her husband died, his account reverted to her name…fortunately, he died at 10pm, *after* the bank failed at 2pm, so technically she didn’t lose half her life’s savings!

Not that bank failures are that likely, especially coupled with a death, but if you’re going to spread your risk around, why rely on a technicality to save you?

[edna_mode]

Also, I would be careful about going over $100,000 for the whole *household*, in case of death. I had heard about a widow nearly losing $100,000 in her husband’s name when a bank failed on the day her husband died. Since she had $100,000 already in her name, when her husband died, his account reverted to her name…fortunately, he died at 10pm, *after* the bank failed at 2pm, so technically she didn’t lose half her life’s savings!

Not that bank failures are that likely, especially coupled with a death, but if you’re going to spread your risk around, why rely on a technicality to save you?

[edna_mode]

Also, I would be careful about going over $100,000 for the whole *household*, in case of death. I had heard about a widow nearly losing $100,000 in her husband’s name when a bank failed on the day her husband died. Since she had $100,000 already in her name, when her husband died, his account reverted to her name…fortunately, he died at 10pm, *after* the bank failed at 2pm, so technically she didn’t lose half her life’s savings!

Not that bank failures are that likely, especially coupled with a death, but if you’re going to spread your risk around, why rely on a technicality to save you?

[Wiley]

First of all FDIC is really just an agreement amongst all the banks to support eachother. In full meltdown its useless. Really it wouldn’t take that much for it to happen in our mad fractional reserve, derivative, structured world.

Second, be very careful about money market funds. Many are able to offer those 5% returns because they are buying mortgage securities and the like. The fund can drop below $1 nav.

I guess the safest is short term treasure bills which you can easily buy at Treasury Direct. Other then that foreign currencies and gold. IMHO.

[Wiley]

First of all FDIC is really just an agreement amongst all the banks to support eachother. In full meltdown its useless. Really it wouldn’t take that much for it to happen in our mad fractional reserve, derivative, structured world.

Second, be very careful about money market funds. Many are able to offer those 5% returns because they are buying mortgage securities and the like. The fund can drop below $1 nav.

I guess the safest is short term treasure bills which you can easily buy at Treasury Direct. Other then that foreign currencies and gold. IMHO.

[Wiley]

First of all FDIC is really just an agreement amongst all the banks to support eachother. In full meltdown its useless. Really it wouldn’t take that much for it to happen in our mad fractional reserve, derivative, structured world.

Second, be very careful about money market funds. Many are able to offer those 5% returns because they are buying mortgage securities and the like. The fund can drop below $1 nav.

I guess the safest is short term treasure bills which you can easily buy at Treasury Direct. Other then that foreign currencies and gold. IMHO.

[Wickedheart]

Credit Unions are covered by NCUA insurance. The amount of coverage depends on how the funds are held. If they are held in retirement accounts, Keogh and Roth IRAs are covered to $250,000 per account. It also depends on the ownership categories. Individual and joint accounts are covered to $100,000. You can get additional coverage for accounts that are held in a trust.

Basically an individual could actually have up to $600,000 in NCUA covered accounts. A married couple could have over a million in covered accounts and a family could have nearly 2 mil covered by NCUA insurance.

This is a PDF file but it explains it pretty well.
http://www.ncua.gov/ShareInsurance/SpecialBulletin.pdf

According to the NCUA not one penny of insured savings has ever been lost by a member of a federally insured credit union. I’m going with the credit union over the mattress.

[Wickedheart]

Credit Unions are covered by NCUA insurance. The amount of coverage depends on how the funds are held. If they are held in retirement accounts, Keogh and Roth IRAs are covered to $250,000 per account. It also depends on the ownership categories. Individual and joint accounts are covered to $100,000. You can get additional coverage for accounts that are held in a trust.

Basically an individual could actually have up to $600,000 in NCUA covered accounts. A married couple could have over a million in covered accounts and a family could have nearly 2 mil covered by NCUA insurance.

This is a PDF file but it explains it pretty well.
http://www.ncua.gov/ShareInsurance/SpecialBulletin.pdf

According to the NCUA not one penny of insured savings has ever been lost by a member of a federally insured credit union. I’m going with the credit union over the mattress.

[Wickedheart]

Credit Unions are covered by NCUA insurance. The amount of coverage depends on how the funds are held. If they are held in retirement accounts, Keogh and Roth IRAs are covered to $250,000 per account. It also depends on the ownership categories. Individual and joint accounts are covered to $100,000. You can get additional coverage for accounts that are held in a trust.

Basically an individual could actually have up to $600,000 in NCUA covered accounts. A married couple could have over a million in covered accounts and a family could have nearly 2 mil covered by NCUA insurance.

This is a PDF file but it explains it pretty well.
http://www.ncua.gov/ShareInsurance/SpecialBulletin.pdf

According to the NCUA not one penny of insured savings has ever been lost by a member of a federally insured credit union. I’m going with the credit union over the mattress.

[Wickedheart]

Wiley

FDIC and NCUA are insurance not just an agreement. T-Bills, NCUA and FDIC are all “backed by the full faith and credit of the United States Government- the strongest guarantee you can get”. I just don’t see the difference. I don’t understand why you would feel T-Bills are any safer. Treasury bills aren’t insured either.

[Wickedheart]

Wiley

FDIC and NCUA are insurance not just an agreement. T-Bills, NCUA and FDIC are all “backed by the full faith and credit of the United States Government- the strongest guarantee you can get”. I just don’t see the difference. I don’t understand why you would feel T-Bills are any safer. Treasury bills aren’t insured either.

[Wickedheart]

Wiley

FDIC and NCUA are insurance not just an agreement. T-Bills, NCUA and FDIC are all “backed by the full faith and credit of the United States Government- the strongest guarantee you can get”. I just don’t see the difference. I don’t understand why you would feel T-Bills are any safer. Treasury bills aren’t insured either.

[bsrsharma]

FDIC is really just an agreement

Not true. FDIC is pretty much a guarantee from Federal Government. If the funds run out, they will be replenished by taxpayers. It happened in the 1980s with FSLIC. FSLIC ran out of funds, it was closed down and the obligations were assumed by FDIC.

 

[bsrsharma]

FDIC is really just an agreement

Not true. FDIC is pretty much a guarantee from Federal Government. If the funds run out, they will be replenished by taxpayers. It happened in the 1980s with FSLIC. FSLIC ran out of funds, it was closed down and the obligations were assumed by FDIC.

 

[Author]

Posts