What's the safest bank to park your money? | FerrariChat

What's the safest bank to park your money?

Discussion in 'Other Off Topic Forum' started by ELP_JC, Jan 15, 2009.

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  1. ELP_JC

    ELP_JC Formula 3

    Dec 13, 2008
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    With bank stocks on a tailspin, I think I need to change my one-bank strategy and move money not insured by the FDIC out of BofA. Seems like Citi is the worst of the 'big-4'. Would you move 1/2 the funds to Chase or Wells Fargo?? I'd have over the FDIC limit on both banks, but not by much, as I'm constantly moving money in and out of the bank. Your input would be much appreciated.
    JC
     
  2. toggie

    toggie F1 World Champ
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    #2 toggie, Jan 15, 2009
    Last edited: Jan 15, 2009
    CDARS might be an option for you.
    Most of the major banks offer it.
    - http://www.cdars.com/index.php

    Basically, the FDIC spreads the money across a wide set of the healthiest banks (not every bank qualifies to be a CDARS deposit bank). You pay for this risk-spreading through a slightly lower CD interest rate being earned.

    Here is their description of what it is:

    "CDARS® is the Certificate of Deposit Account Registry Service®. And it's the most convenient way to enjoy full FDIC insurance on deposits of up to $50 million. With CDARS, you sign one agreement with a participating local bank or other financial institution of your choice, earn one interest rate, and receive one regular statement. It's that easy."

    .
     
  3. rob lay

    rob lay Administrator
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    CDARS sounds pretty cool.
     
  4. jk0001

    jk0001 F1 Veteran

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    Send it to me in an unmarked cardboard box to my P.O. Box , shake this hand and you are insured. :D
     
  5. ELP_JC

    ELP_JC Formula 3

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    #5 ELP_JC, Jan 15, 2009
    Last edited: Jan 15, 2009
    Thanks a lot for that suggestion; didn't know about it, but need to find out how liquid they are (without penalties). As I mentioned, am constantly moving funds in and out, but might put a few.

    JK0001, I'll suggest to CDARS to add you to their list of 'qualified institutions' < he he>.

    How about your view on the safest bank of the big 4? BofA might be at risk, as well as Citi, no? Don't want to be caught in a mess, even with the money insured. Nobody would be able to buy a giant like Citi or BofA on this economic environment. I know that'd be very unlikely, not to mention catastrophic to the economy, but Obama's intended use of the remaining TARP funds scare me a little. Thank you for your comments gang. Good day.
     
  6. toggie

    toggie F1 World Champ
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    Some other options to consider for where to store cash:

    - Credit Union, most of these are in much better shape than the banks. They operate under simple loan underwriting rules and typically have minimal exposure to the mortgage crisis.

    - A newly-chartered small regional bank, most banks less than 2 years old are in pretty good shape in terms of their loan portfolio being recently underwritten and most of these have minimal exposure to the mortgage crisis. They often are just a pure bank, they haven't had time to buy the typical financial diversification offerings of: an investment firm, mortgage brokerage, wealth management company, m&a broker, and trust division.

    - Bury the cash in the backyard, make sure you use waterproof container, maybe PVC is best?

    - Store paper dollars in a safety deposit box.
     
  7. RacerX_GTO

    RacerX_GTO F1 World Champ
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    #7 RacerX_GTO, Jan 15, 2009
    Last edited by a moderator: Sep 7, 2017
    These ammo cans are just what the doctor ordered, thick rugged plastic, rubber O-ring sealed and enough cubic inch space to hold several wrapped $10,000 bundles and or gold bullion.
    Image Unavailable, Please Login
     
  8. WILLIAM H

    WILLIAM H Three Time F1 World Champ

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    Bank of Smith & Wesson is best bet

    Everbank is good, they didnt get into the whole crazy subprime mess so they are still in very good shape

    I'm going to drop my BOA account down to a minimum

    you can look at www.goldmoney.com too
     
  9. Mrpbody44

    Mrpbody44 F1 Veteran

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    - Credit Union, most of these are in much better shape than the banks. They operate under simple loan underwriting rules and typically have minimal exposure to the mortgage crisis.

    - A newly-chartered small regional bank, most banks less than 2 years old are in pretty good shape in terms of their loan portfolio being recently underwritten and most of these have minimal exposure to the mortgage crisis. They often are just a pure bank, they haven't had time to buy the typical financial diversification offerings of: an investment firm, mortgage brokerage, wealth management company, m&a broker, and trust division.

    The big banks are in a mess in a big way. The government does not want you to know how bad a mess they really are in. The above advise is very good. Gold in small bars and coins for a small portion of your savings in case things go Mad Max.
     
  10. Mrpbody44

    Mrpbody44 F1 Veteran

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    Store paper dollars in a safety deposit box.

    Not a good idea considering what has happened in California and the UK with the state seizing safe deposit boxes and taking the contents.
     
  11. WILLIAM H

    WILLIAM H Three Time F1 World Champ

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    #11 WILLIAM H, Jan 15, 2009
    Last edited: Jan 15, 2009
    Got a link for this ? I found some CA http://abcnews.go.com/gma/Story?id=4832471&page=3

    UK http://nestmannblog.sovereignsociety.com/2008/06/is-your-safety.html

    When I said the Feds could seize people's gold everybody thought I was crazy

    Heres an article on what NOT to put in a bank safe

    Now maybe I'm not so crazy :)
     
  12. WILLIAM H

    WILLIAM H Three Time F1 World Champ

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    What about foreign banks like HSBC ? They are Chinese,

    HSBC = Hong Kong Shanghai Bank Co

    They must have Trillions in assets

    any good swiss bank or Japanese banks that are secure and operate in USA ?
     
  13. RacerX_GTO

    RacerX_GTO F1 World Champ
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    Hahaa! Probably the one country the USA cannot bully into giving up bank records

    USA Govt: "Give us the records of all Americans who have bank accounts"
    China: "Poor Yankee, go stuff yourself"
     
  14. f1_nix

    f1_nix Formula 3
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    ELP JC

    In what part of the country are you located? What services do you use or need from a bank?
     
  15. ELP_JC

    ELP_JC Formula 3

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    Excellent advice. I was under the impression bigger is better, but your eloquent explanations make perfect sense. Will look into that. My question is if you ask about their portfolio, do they have to tell you (the truth)???

    And I don't like having cash around, especially anything more than a few grand. Never been into gold either; seems to me like gambling, just like the stock market (which I don't play). If I lived in a country in turmoil, maybe. Or if I was in a questionable line of work < he he>, but am not in neither, a bank is fine. Thanks again for your great help.

    William, what I've read indicated HSBC is in bad shape too. Maybe not as bad as Citi or BofA, but I wouldn't consider it. It's counterintuitive to think of a small bank being safer than a big one, but makes sense to me; worth looking into that. Plus you might be treated better. Take care.
     
  16. f1_nix

    f1_nix Formula 3
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    I thought they were British founded during the colonial period.
     
  17. ELP_JC

    ELP_JC Formula 3

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    #17 ELP_JC, Jan 15, 2009
    Last edited: Jan 15, 2009
    Need to fill my profile, sorry. El Paso, TX.
    I finance housing projects, so nothing special as far as services: cashier's checks, wire transfers, and checks. I just need to have most of that money liquid. A money market account is what I've been using, which generates interest, but it's down to almost zero now. Thanks.
     
  18. f1_nix

    f1_nix Formula 3
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    All banks and thrifts operating in the US are required to provide detailed financial information quarterly to their regulator. These reports are publicly available on the web from the FDIC, the FFIEC, the Fed, or the NCUA.

    For the FDIC website you are looking for a report called the Call Report (banks) or a Thrift Financial Report (thrifts) http://www2.fdic.gov/Call_TFR_Rpts/index.asp

    For the FFIEC (Federal Financial Institution Examination Council) you would look for a Uniform Bank Performance Report (UBPR) http://www.ffiec.gov/UBPR.htm

    For the Fed, you would look for a Bank Holding Company Performance Report (BHCPR). Start here, select your bank (top level holding company) then follow the links to the BHCPR http://www.ffiec.gov/nicpubweb/nicweb/SearchForm.aspx


    For Credit Unions start here http://webapps.ncua.gov/ncuafpr/
     
  19. f1_nix

    f1_nix Formula 3
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    Go see State National or Bank of the West.
     
  20. SrfCity

    SrfCity F1 World Champ

  21. PeterS

    PeterS Five Time F1 World Champ
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    Tell me the banks are not doing that! WOW! That's where I was thinking to stash some cash. Now the back yard is sounding pretty good!


    I would guess that China would never crack on that rule. Pretty good!
     
  22. WILLIAM H

    WILLIAM H Three Time F1 World Champ

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    Maybe they were, I think they are owned by China now

    and when I say China I mean the Chinese Communist Party

    They are not so Communist these days

    Maybe the US Democrats and the Chinese Communists should swap names LOL
     
  23. PaulC

    PaulC Formula 3

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  24. djui5

    djui5 F1 Veteran

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    We bank with a Federal credit union, Desert Schools to be exact. I love them. We've had accounts with so many banks and they all suck IMO. They are businesses, out to make money. Business banks prey on their own customers, it's how they make a profit. FCU's do not.

    Of course I also like the idea of buying Gold :)
     

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