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How to Find a Safe Bank in 2008

Written by: Jon Mitchell Jackson

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Business

Posted over 3 years ago. 3 helpful votes, 0 comments

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Step No. 1

Here are several good tools and tips to help keep you money safe and sound… Step No. 1- Find out how safe your bank really is. Go to the BankRate web site and review the safe and sound ratings of your bank. Go to http://www.bankrate.com/brm/safesound/ss_home.asp

Step No. 2

Use the interactive worksheets which will tell you if your deposits are insured. Go to fdic.gov and visit the FDIC's Electronic Deposit Insurance Estimator. Generally if you have up to $100,000 in any one bank or up to $200,000 for joint accounts, the money is safe. Also, some retirement accounts are insured up to $250,000. Other investment firms like Charles Schwab may offer additional protection.

Step No. 3

If you need more protection, you can change ownership status on the account so that you and your spouse can have individual $100,000 accounts plus a joint account that holds $200,000. All will be insured. (Note- this may not be the smartest way to spread your money around because in most cases, a judgment creditor will be able to attach these funds to collect a judgment. The use of certain specific trust may be a better alternative).

Step No. 4

You can set up a "home bank" and stay fully insured. Here's how this works. The certificate of Deposit Account Registry Service (CDARS) lets you keep up to $50 million in CDs with one "home bank" and stay fully insured. What happens is that participating banks parcel out your holdings among other participating banks. Normally you get a single consolidated statement for all accounts. This is a good way to easily protect your money while in between investments.