Small Business Resources, Business Advice and Forms from AllBusiness.com

Take a Deep Breath. Your Bank is Probably Safe. Or At Least Your Money Is.

Tuesday, July 15 2008

One of the issues this morning, as worries over the IndyMac continue, is whether or not your money is safe in the bank. The good news is that most of us don't have anything to worry about -- provided your money is in a bank that is insured by the FDIC. (Or a credit union insured by the NCUA.)

Here are the insurance limits offered by the FDIC and the NCUA:

  • $100,000 on individual accounts.
  • $200,000 on joint accounts.
  • $250,000 on retirement accounts.

If you have more than these limits in one account, you might consider moving some of the money to another account at another insured institution. Additionally, there are ways to structure your account so that you can actually get more than the insured amount back. But you can get peace of mind if you spread your money around to other banks and/or credit unions.

Also, note that the FDIC insurance fund has $53 billion in it, and the ability to raise more quickly. Even with IndyMac's estimated $10 billion payout, there is plenty left. Chances are that you can arrange to get most -- if not all -- of your money in the event your bank should fail.


Tags: , , , , , ,


Latest Comments

I talked with my banker today and he said he has spent almost every minute this week meeting with nervous customers (depositors). He held a class on Monday to refresh the entire branch crew on FDIC insurance and is happy he did. Customers just want to be reassured.

Comment By: Gary Anderson CPA  |  7/15/08 at 7:25 PM Take a Deep Breath. Your Bank is Probably Safe. Or At Least Your Money Is.

Thanks for sharing! It is true that most people are just looking for reassurance. The news of such a bank failure can be unnerving, and it is great of your banker to provide information to his customers.

Comment By: Miranda Marquit  |  7/17/08 at 4:26 PM Take a Deep Breath. Your Bank is Probably Safe. Or At Least Your Money Is.
You must sign-in or sign-up to comment on this post.

Small Business Expert
rlesonsky_80
Ask Rieva Lesonsky, Our
Small Business Expert,
Your Question
Sales Expert
krosen_80
Ask Keith Rosen, Our
Sales Expert,
Your Question
Business Travel Expert
krosen_80
Ask Ken Walker, Our
Business Travel Expert,
Your Question
Invention Expert
Ask Stephen Key, Our
Expert on Licensing Your
Invention, a Question
Creating an Effective Women-Owned Business
Host Hattie Bryant of Small Business School interviews Cheryl Womack and a coworker at VCW, an independent truckers' association based in Kansas City, Missouri.