Should I put my money in the bank or a cookie jar? Seriously!

AllisonC_IHB

AllisonC_IHB

New member
OK, I am not the smartest in managing my money. I have put every single penny of my 6 figure down payment at WaMu. Now it is in trouble, so is my money. Can someone please advise which bank is the safest to put my money now? I am not kidding, but I am seriously thinking of putting it in a cookie jar under my bed. :down: I am so scared.... please help.... please.... thank you....



(My amount is covered by FDIC, but it does not ease my fear. I don't want my money tied up. )
 
[quote author="Allison C." date=1221132507]OK, I am not the smartest in managing my money. I have put every single penny of my 6 figure down payment at WaMu. Now it is in trouble, so is my money. Can someone please advise which bank is the safest to put my money now? I am not kidding, but I am seriously thinking of putting it in a cookie jar under my bed. :down: I am so scared.... please help.... please.... thank you....



(My amount is covered by FDIC, but it does not ease my fear. I don't want my money tied up. )</blockquote>


I emailed Graphrix on this same issue last night for exactly the same reason. I don't think he would mind my copying his reply:



"I would recommend checking into some of the credit unions around where you live and work. Many now will let you join for a one time fee of like $10. America's First Credit Union is in the Ralphs shopping center at Jamboree and Irvine, and IIRC they will let anyone join. Plus you would want a credit union who is part of the "co-op", like OCTFCU and America's first. Which means you can make deposits or free withdrawals at anyone of the credit unions in the "co-op".



As for big banks I would look into Farmers and Merchants, Union Bank of Cal, US Bank, and Citizens Business Bank. I like F&M and CBB if you really think you might need to have business accounts needs.



I hope that helps you out, and I don't blame you for wanting to get out of WAMU."
 
I understand it is difficult not to worry, but as long as your funds are FDIC insured, they are safe. Personally, I prefer Farmers & Merchants as I think it is the safest in California.
 
[quote author="awgee" date=1221134055]I understand it is difficult not to worry, but as long as your funds are FDIC insured, they are safe. Personally, I prefer Farmers & Merchants as I think it is the safest in California.</blockquote>
... or... if you should go the route of a credit union, it should be insured by the NCUA (National Credit Union Administration) and that is fine too.
 
sorry to rain on your parade, but I heard it on the radio the other day that FDIC insurance has small print saying that the feds have 99 years to pay your money back? correct me if I'm wrong on that, but the cookie jar looks pretty good at this time...
 
[quote author="blackacre-seeker" date=1221138333]sorry to rain on your parade, but I heard it on the radio the other day that FDIC insurance has small print saying that the feds have 99 years to pay your money back? correct me if I'm wrong on that, but the cookie jar looks pretty good at this time...</blockquote>


True, but the FDIC will acquire, (borrow), whatever funds it needs, and it will pay within days. The whole fractional reserve banking system is based on the "faith" that your deposit will be there when you ask. The consequence of non-payment on insured deposits is a complete collapse of our banking system and the Federal Reserve will not let this happen. The FDIC is a division of the Federal Reserve and the Fed's ability to create currency is unlimited. Deposits in a US bank are insured by FDIC reserves in name only. They are actually insured by the Fed's abililty to create as much money as it sees fit.
 
[quote author="Allison C." date=1221132507]OK, I am not the smartest in managing my money. I have put every single penny of my 6 figure down payment at WaMu. Now it is in trouble, so is my money. Can someone please advise which bank is the safest to put my money now? I am not kidding, but I am seriously thinking of putting it in a cookie jar under my bed. :down: I am so scared.... please help.... please.... thank you....



(My amount is covered by FDIC, but it does not ease my fear. I don't want my money tied up. )</blockquote>
Allison, to ease your worry, I have had my money in about 4 different banks that have gone belly up in the course of my life. My money was available the very next day as if nothing happened to the bank. I didn't have to fill out any paperwork or wait any amount of time to get my money. Just make sure your money is under the FDIC limit.



Check out the <a href="http://www.fdic.gov/">FDIC</a> website for further information.
 
[quote author="IrvineRenter" date=1221132920]



I emailed Graphrix on this same issue last night for exactly the same reason. I don't think he would mind my copying his reply:



"I would recommend checking into some of the credit unions around where you live and work. Many now will let you join for a one time fee of like $10. America's First Credit Union is in the Ralphs shopping center at Jamboree and Irvine, and IIRC they will let anyone join. Plus you would want a credit union who is part of the "co-op", like OCTFCU and America's first. Which means you can make deposits or free withdrawals at anyone of the credit unions in the "co-op".



As for big banks I would look into Farmers and Merchants, Union Bank of Cal, US Bank, and Citizens Business Bank. I like F&M and CBB if you really think you might need to have business accounts needs.



I hope that helps you out, and I don't blame you for wanting to get out of WAMU."</blockquote>


I use a credit union, Kinecta (they have several OC locations, including Quail Hill and The District), and love them. Always friendly, usually better rates, and they often have small seminars they give for home buying, retirement, etc.



But I will have to find another bank as I do not want to exceed the insured limit. I'm thinking another credit union since I've always liked them more than banks. Maybe I'll check out America's First.



And a bit off topic, but I keep on telling my mom to get her cash out of Downey Savings, b/c that's one I also hear is not doing very well.
 
I just put some money in Kinecta. I've used them a long time ago and they seem good. There is one located in the Tustin district. They have good savings rate plus 4 star rating on the bauer financial website. FYI, Downey Savings has ZERO star.

When in doubt, you can check your bank or credit union here.



<a href="http://www.bauerfinancial.com/btc_ratings.asp">http://www.bauerfinancial.com/btc_ratings.asp</a>
 
Your money should be fine up to 150K. However, if I was you I would probably take my money out (if you still can).



Where do you put it? Personally I would target a bank that hasn't had as much exposure to MBS as WaMu. A somewhat safer bank (but not out of the woods) would be Bank of America for example. That is if you want to deposit cash within US then yeah something like that would work. However, that still isn't your best option and here is a small answer as to why.



Our economy will not recover anytime soon as credit is tight and more banks are going south. The US government is trying anything they can to prevent a complete collapse. The fact that they bailed out F&F really won't solve the situation we are in and where we are going. Only thing they did was put a pillow underneath a bird falling 20,000 feet. In other words I believe the government is simply trying to ease our way into a really bad situation vs. letting us free fall into it, where mass panic probably would occur. Mass panic would probably lead to a complete collapse and to hyperinflation. We dont want to go there.



So, if they didn't do the F&F bailout and F&F went under...I wouldn't be suprised if your homes fell 50% in value overnight (yes I really mean overnight) as everybody and their mother runs to their banks taking cash out completely destroying any capital banks have(don't have). Actually, If everybody decided to take money out...I don't think the FDIC even has the money to cover you. They will have to raise debt or print more money....and you know where that leads.



Lehman is on the verge of going down right now and so is WaMu. I would give a month or two the most before they are bailed/bought out or just go under. If banks get bailed out...then our government will take the heat putting pressure on the dollar and pushing inflation up further. If banks go belly-up then we risk mass panic. If another company is forced to buy them out....they will inherit the debt/risk. There is no pretty solution. We will have to pay for this mess somehow.



So I firmly believe that we are heading into a really bad situation (and hopefully not a catastrophic one) in the next couple of years to come. OH almost forgot...ARM resets anyone? If you think Sub-primes are bad....say hello to ARMs!



So would I even put money in BofA or another "safer" bank? Probably not. If things go south, inflation alone will kill you and so will the weaker dollar. Yes its getting stronger (atm), but if our government keeps bailing companies out...then they have to print money or raise capital somewhere. That won't help. So your the chances of inflation/weak dollar nailing you are pretty high.



I would probably spread the cash around in various banks in various currencies. Go ahead and put x% or so in the US dollar and maybe a safer US bank, put x% or so in the EURO and perhaps put it in a German bank, another x% in Brasilian currency and bank etc. or some other strong world bank/currency. You can even put some money in gold/silver or other minerals (even though they are a bit high right now) or common stock. You really can mix and match anyway you want. Your goal is simply to remove the risk exposure to US inflation and the weakening of the dollar.



BV
 
[quote author="Trooper" date=1221220945]You are going to fit in just fine here bv.</blockquote>
Did Awgee change his name to Blackvault? :lol:
 
I have 3 accounts with WAMU and i hope they start selling branches to weather the storm. It would be sad to see them go as they are a great bank. If WAMU goes BofA is not an option as i think they are one of the worst of predatory fee banks.
 
[quote author="CalGal" date=1221258699][quote author="Trooper" date=1221220945]You are going to fit in just fine here bv.</blockquote>
Did Awgee change his name to Blackvault? :lol:</blockquote>


And I was just thinking how perceptive, bright, and intelligent Blackvault is.
 
[quote author="OCCOBRA" date=1221275552]I have 3 accounts with WAMU and i hope they start selling branches to weather the storm. It would be sad to see them go as they are a great bank. If WAMU goes BofA is not an option as i think they are one of the worst of predatory fee banks.</blockquote>


The main reason I have been with WAMU is free banking. I guess I will enjoy it as long as it lasts (which doesn't look like too much longer.)
 
All your answers and info. are INVALUABLE! (sorry for the caps, hehe) I have called and checked out a few of the recommendations mentioned. I was so ignorant of not knowing the options available, thanks!
 
I'm in a similar boat, nervous and somewhat clueless. :) I was told by my branch manager that the FDIC insures 100k per account holder, so if you have a joint account you are covered for up to 200k.



I use BofA for my US accounts but their CD rates are < 3% at the moment so I opened up an HSBC online savings account (they're offering 3.5% currently.)



BofA offers a Hello Kitty bank card. It's the little things. =D



Thanks for the info in this thread, as usual, IHB is a place of enlightenment.
 
I've had the same checking account since high school... started out as Coast Federal Bank, which was acquired by Great Western Bank, which quickly became Washington Mutual. I'm pretty worried about my savings becoming worth less and less before I get the chance to finally buy a home.



I'm heeding the warning now to spread around my savings/down payment. How does one go about exchanging money into a different currency in a foreign bank? Can it be done through an investment firm like Fidelity? Can it be done through a credit union or a bank like Farmers and Merchants?
 
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