Please, make a run to your bank and withdraw ALL your money!! Just kidding. You would think that the government made that announcement on Friday night. You wouldn’t believe how many people are coming into the bank trying to withdraw all their money. I have seen people wanting to cash checks for $100,000! First of all, most branches are lucky if they have that much in the whole branch, and secondly, what are you going to do with it? Bury it in a coffee can in your back yard? Put it under a mattress? What bad ideas!
This is my opinion on what you should do currently:
- Make sure you are FDIC covered. If you have more than $100,000 in one bank, add someone as Payable on Death (POD). That will increase your coverage to $200,000 ($100,000 per depositor).
- DON’T go run and close out your bank accounts. If everyone closes out their bank accounts, of course the banks are going to fail! Relax, maybe have a little cash on hand, and ride it out.
- Just because the FDIC has up to 99 years to pay you back, that doesn’t mean it will take that long. The most it’s taken them to pay people back is two weeks.
- If your bank goes under, chances are they are going to reopen their doors the next day. It will probably be under a different name, but you’ll be able to conduct business as usual.
If I had a dollar for everyone I’ve talked to about FDIC coverage and the current state of the economy and about banks failing, I would be rich. I think the media has caused so much hype and they need to calm it down a little bit. The more people get worried, the worse off we’re all going to be. Make sure you are insured, have a little cash on hand, and make sure you are living below your means. You can’t do much more than that.
Are you withdrawing or closing any of your bank accounts?