FDIC Insurance Calculator

[Boomer]

I know. I know. We have met the FDIC and it is us.

While we wait for those who did us in to come to a decision that attempts to lull us into pretending, along with them, that they know how to get us out of this mess, you may find that your thoughts are turning to someday, sometime, quite simply deciding to cower in cash.

And I know. I know. You probably already know all this. But just in case you find yourself overwhelmed with a sudden desire to stash cash, this information might help with some decisions.

And oh yeah, I know, it has also probably crossed your mind to wonder about the FDIC.

But for now, I thought some of you might find this calculator interesting.

I found this on the FDIC government site. Suze Orman also has a link to the same thing. (I must say that I respect Suze Orman for trying to educate so many. She gets information out there in a style that does not intimidate.)

So anyway, when is $100,000 not $100,000 in one bank under the FDIC insurance guidelines? -- Well, according to this calculator you can insure more than $100,000 in one bank, depending on the types of accounts you use.

POD (Payable on Death) accounts might be worth learning about if you do not already know. The titling of these has to do with beneficiaries. And I think there may be some variation from state to state. Not sure. Make sure you understand it.

And if you have an IRA in a bank, make sure you understand how the FDIC insurance works for that.

For all of this stuff, make sure you understand what you are doing. The wrong kind of ownership on too many accounts in one bank can really mess up the FDIC insurance coverage.

And please make sure you understand that I am not a financial advisor or a banker or anything of the kind, nor do I play one on telelvsion. I just like to put some information out there once in awhile, in case anybody reading it finds it interesting and uses it as a start to learn more on their own.

So here is the link to the FDIC calculator. You don't put in real names of banks and accounts and stuff.

And really, who knows, huh. I honestly do not know what to think about any of this. And I sure am not giving any advice. Just providing a little information that is here today. Who ever knows about tomorrow.

On this calculator there is a part where it says you can add an account to continue calculating. It sends you back to Step 1. I did not get what it was doing, at first. But that's just me. You will be fine I am sure.

So anyway here goes. Right from the government site itself. (I know. I know.)

http://www.fdic.gov/edie/index.html

And this link is from "Money Girl." She does what she calls her "Quick and Dirty Tips" via podcasts with the transcripts on line. You might find her site interesting to browse around.

So here's Money Girl talking about the FDIC. If you look around her site, you will find more stuff on the FDIC.

http://moneygirl.quickanddirtytips.com/fdic-insurance-questions.aspx

Boomer

[samhass]

Speaking of the FDIC, they seized wamu, sold. the assets to Chase (who says the assets will add .50 a share to their bottom line) and they shaft the shareholders.
The middle class investors are getting taken to the cleaners

[billethkid]

enema!!!! When the baddys are cleaned out, the system should be much better.
The only negative side effect I see is the executives and boards of directors who were in charge at the time should be held accountable.
But that is like wishing on a star!!!!

Isn't it interesting how they all started to fall like dominos?

Not a mystery at all. When the first few take the plunge and come out unscathed the rest follow....even the ones who didn't intend to....why not....steal the investors and customers blind...get a golden parachute...no penalty for junking the company....hey where's my hand out?

The rich....that would be our representatives in Washington will never persecute the rich....if they set such a precedent, they may wind up getting nailed, hence nothing of significance happens except Jack and Jill America get screwed again.....without a whimper again.

BTK

[Boomer]

Just this morning I started this thread in case anybody might be interested in reviewing their own understanding of FDIC insurance and how it applies to different types of accounts, the ownership of those accounts, and the amount of coverage possible in one bank.

So I posted and I did not look back -- until just now.

Well, guess what. One of the rules has changed since this morning. How creepy is that? It appears to be a change for the better but who knows. It has to do with revocable trust accounts and I did not read the explanation all that closely. There is something in it about "confidence" in the system and all that nonsense. The fact that it is a "change" does not give me confidence. It creeps me out. I know. I know. They say it is OK. But gee, my confidence is somewhat lacking right now.

In my opening post at about 8:00 this morning, I actually said, "Just providing a little information that is here today. Who ever knows about tomorrow." That is what I said here. Twelve hours ago. And the information has changed already.

What will tomorrow bring?

And about this meltdown in general -- you know, I have heard this thing called "stupidity" on the part of the banking system. This does not look at all like stupidity to me. This looks like pure evil.

I have talked to a lot of people this week. There is a heap of hurt out there.

So anyway, if you were interested in this morning's link, and you did not see that change in the rules, you might want to have another look. It might not be a bad thing. But it is a change. -- and it happened within hours. And these recent hours have not been just any hours.

Boomer

[Boomer]

Hey, I think I am starting to sound like I am beginning to obsess a bit about banks.

I paid mine a visit yesterday, just so I could see it, touch it, feel it, smell it.

Is that obsessive??? Oh my!!! Uh oh!!!

Hey, just because I quizzed the banker at great length about liquidity and where the bank's mortgages are. (I did not make him show me the shelf where they are kept.)

And then I gave him a big kiss for not having stockholders to keep happy for all these years.

And I consoled myself with the fact that I found him sitting at his desk, not under it.

And I did not break up with him.

And I just hope nothing can huff and puff and blow that brick and mortar down.

And I just took a look at my November "Kiplinger's" which has an article about banks and bank stocks.

If you are interested in banks, too, you might want to have a look at the article. But please try hard not to obsess. OK.

Boomer

[Boomer]

This morning I took a look back at this thread I started a few weeks ago when I found myself gripped with a sudden desire to know more about the FDIC. I just checked the calculator I linked here then to see what it had to say about the new rules. It now includes an update. (You know, I have wondered how the government knows what I am writing about on TOTV. This is not the first time my links have been changed. Do you think I should be worried????)

Today, I am including a link to a story about the woman who is in charge of the FDIC. From the story, I think I like her.

Now, here is your morning storytime. (And I am not exactly digressing here. I am just telling you a little story that connects this financial mess to the story of the Trojan War.)

Anybody familiar with the story of Cassandra in the Trojan War? Well, Cassnadra kept running around inside the walls of Troy, warning the others, "DO NOT BRING THAT WOODEN HORSE IN HERE!!!"

But, nobody would listen to Cassandra. They thought she was just trying to ruin their celebration. They thought the horse was a gift in honor of their victory. All Cassandra's fellow Trojans wanted to do was party on and get really drunk. So that's what they did, ignoring Cassandra's warnings.

You know the rest of the story. Party people are not good at protecting much of anything. And those partying Trojans were so arrogant that they had even pulled that wooden horse inside those walls that had always kept their city invincible. And then the soldiers who were hiding inside that wooden horse, climbed out and slaughtered them, right inside those famous walls that had always protected their city.

So here's the link to the story about the woman who is the head of the FDIC. She tried to warn them. Nobody would listen.

http://www.npr.org/templates/story/story.php?storyId=95881741

Boomer