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Discussion Starter · #1 ·
I was standing in line behind a elderly gentleman( looked like he was the right age to have grown up in the great depression) and he was there to withdraw all his money. He told the bank teller it was most likely safer buried in the backyard than in the bank. The bank manager tried to reassure the guy that the money was insured up to a certain amount but he still wanted it all. It made me wonder what people thought about their money.

I have a regular bank account at a credit union and then I have my emergency accounts with ING Direct; I am slowly trying to build up the emergency accounts. I have been using ING Direct for about 4 years and they have been great and have great rates.


So what is your take on it all? Are banks and credit unions safe or is burying your money the way to go?
 

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Wonder what that old man's address is. ;)

If it ever gets to the point, where your bank cannot give you your money and the federal government cannot back it up, then the cash buried in your back yard will be nearly worthless also.
 

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Discussion Starter · #4 ·
Wonder what that old man's address is. ;)

I almost wrote that exact thought.

If it ever gets to the point, where your bank cannot give you your money and the federal government cannot back it up, then the cash buried in your back yard will be nearly worthless also.
I know from listening to stories my grandparents have told that lots of people did bury their money after the great depression as they thought it was safer than the banks. My only fear about burying money is that I would forget where I buried it. Let's hope that it never comes to the banks failing.
 

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I work at my credit union, knowing what I do about how things are being run here at this specific one I ended up moving my emergency fund from ING to here. IMO you will be safe at any CU or even bank for that matter that keeps a large portion of it's assets liquid (cash on hand) and has extremely conservative lending policies (no subprime mortgages!).
 

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Discussion Starter · #6 ·
I work at my credit union, knowing what I do about how things are being run here at this specific one I ended up moving my emergency fund from ING to here. IMO you will be safe at any CU or even bank for that matter that keeps a large portion of it's assets liquid (cash on hand) and has extremely conservative lending policies (no subprime mortgages!).
Betho- Do you mind me asking why you changed from ING to your bank? I am getting better rates at ING then my credit union last I checked for the savings accounts.
 

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From an FDIC insurance point of view, your money is not safe. Before the depression began, FDIC had something like $43 billion to insure over $4 trillion. There simply isn't enough money there to insure the thousands of banks that remain. Yes, Congress will keep funding FDIC. This and the many bailouts, past-present-future, will make our dollar worthless. So, from the perspective of "what's the dollar worth", one must get their money out of dollars and into something tangible. The sole reason the dollar is as high as it is because the world has panicked and put their money into dollars. EU2020 predicts that the US will default on its debt before summer. The desire for the fed to begin selling bonds is said to be the first step in this process. This stuff is way above me but my money will be out of the banks in the next month or so.

I was standing in line behind a elderly gentleman( looked like he was the right age to have grown up in the great depression) and he was there to withdraw all his money. He told the bank teller it was most likely safer buried in the backyard than in the bank. The bank manager tried to reassure the guy that the money was insured up to a certain amount but he still wanted it all. It made me wonder what people thought about their money.

I have a regular bank account at a credit union and then I have my emergency accounts with ING Direct; I am slowly trying to build up the emergency accounts. I have been using ING Direct for about 4 years and they have been great and have great rates.


So what is your take on it all? Are banks and credit unions safe or is burying your money the way to go?
 

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I really like the local SAVINGS BANK, which ROCKS!

You get to vote on board members, I know the tellers by name. It's a nice small bank with *NO* branch offices.

and If you are to bury your money, you need to use coins! That way they are backed up by the price of metal, so even when money is worthless, you can melt it down and use it as raw material, which would have some worth, better than burning fiat paper in the stove!
 

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I know from listening to stories my grandparents have told that lots of people did bury their money after the great depression as they thought it was safer than the banks. My only fear about burying money is that I would forget where I buried it. Let's hope that it never comes to the banks failing.
One big difference. In their time, the money you'd be burying was silver and gold - hard currency that the government couldn't manufacture on a whim, and that retained its value reasonably well.

Currently the government can insure with FDIC - they own the printing press and most of the guns, so they'll get their cash somewhere. Burying our current paper money doesn't make much sense - you're at risk of someone digging it up and stealing it, and if you don't have some way of earning interest you're constantly losing money to the "inflation tax".
 

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plowjockey's got it right... if the govt. or the system falls, or fails, the greenback fiat currency will be (already is losing value) worthless.

I'm keeping my main funds in the bank. Keeping fiat currency at home, and would like to convert some to real money, silver.

I'm slowly transferring all of my fiat currency into real goods, like tools, copper wire, metal roofing, nails, screws, pipe fittings, powder, lead, reloading tools, and extra firearms, and lots of stuff that I'm going to need eventually.

Burying fiat currency is not wise... I'd bury silver coins in a heartbeat, but not pieces of paper... rather stock up on toilet paper, it'd have more value than greenbacks, if the shtf.
 

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Keep enough in the checking account to manage family finances, then spread out the rest in savings, CDs, and real investments (things that appreciate with time). In a crisis, banks won't have enough to cover themselves, and paper money will go down quick, making metals and other real investments(properties, equipment, etc) the only way to preserve value in the long term(as long as the investment is maintained so that it's value stays high).
 

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Betho- Do you mind me asking why you changed from ING to your bank? I am getting better rates at ING then my credit union last I checked for the savings accounts.
I am not Betho, but I used to work in a biggest credit union in WI ;)

Both institutions are insured with the Government. Betho might feel more confident with her credit union because she "knows" it, but credit unions are not necessarily any safer than a bank. How stable or well performing a financial is this point really depends on its business practices in the last couple of years. Did it engage in lending to risky clients? Did it lend "too" much of its assets?

Banks have to produce a profit to appease their shareholders and could have taken on increased risk to get that profit, but credit unions could also have increased their risk in order to pay for a new head quarters or to attract new members. Some credit unions and small banksare having difficulties.

There are bank/credit union rating sites on the Intranet where you can look up how well your financial institution is doing. Just be sure to read each website's explanation of their rating system before you look up your institution as each one is different! One rating site is Safe & Sound Ratings at bankrate.com

You might be able to access your cash faster if you had it in a local account, but you are "paying" for that easy access by getting a lower interest rate. Remember financials only keep an "average" amount of cash on hand and won't have enough cash to satisfy all of its customers if there was a big run on withdrawals.

Buying Gold isn't always a better way to "save" money since gold doesn't always increase in value. The price of gold has volatile latley as a lot of people were selling gold to get cash to cover their losses in the Stock Market. Here's a chart that shows the 1 year history of gold price in US dollars.

As for me I am trying to reduce my risk by reducing my purchases, not using credit cards, paying off debt and saving my money in a couple of different financial institutions. I guess if we had a lot of money I might look at moving some money into European banks, but DH is out of work and we are as poor as a church mice.

YMMV
deb
in wi
 

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What betho said. The insured amount is now $250K, so look for the bank/CU that provides you with the highest return with the shortest duration.
 

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Katgowen, I decided NOT to use ING, despite their higher interest rates, because their different accounts are in NO way insured, even by an agency that may run out of money, as the FDIC. So far, account holders are being reimbursed by the FDIC. At some point it will run out of $ though.

On your other question, having made it thru Katrina, and almost not making it thru Gustav, I can tell you that if you can keep some of yr $ from rotting in the back yard, or wherever! you will be better off. (Or in a firesproof container, etc if you are in a fire area). While banks and ATM's were out of commission for up to 5 weeks here after Katrina, and for only 5 days or so after Gustav, I can't tell you the importance of cash, even for people who prep. People who lived thru the Great Depression are often content to have some real cash at home, even tho they are losing (mythical?!) interest, rather than risking a total loss. Best wishes w this, ldc
 

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If were talking typical got a few CD and savings in the bank type of money values not exceeded FDIC limits then you would be stupid to bury all your money. First, there has not been any money lost in FDIC insured accounts and when it comes to a point when FDIC CANT insure they money any longer then the value of that buried money will be next to nothing. Assuming also that the container you put it didnt leak, didnt get found by somone and you can find it again. A few % in the bank is better than nothing in the ground.

Now I am not saying you might want to have a little money stashed away to get you through the time it might take the FDIC to get the rest of your money to you, but to dump all of it in the ground is just silly.
 

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I like the fire proof two-drawer filing cabinet that i keep the ammo can in. Which is in an out building. banks are fine if you think the interest made is worth the risk. I dont at the moment.
 

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I think it strange that a lot of the people I hear talking abou the govt printing money and fiat currency, and if you bury it, it will be worth nothing, but these same people say you should carry very little credit and try to pay down everything. If you truely believe that the dollar will be worth next to nothing then why not run up all the credit you can? Get the most expensive house, car, run up the credit cards, finance everything. If the dollar tanks, you will still owe the same amount, they cant raise it just because the dollar is worth less. So, youll make out like a bandit.
 
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