Is our money safe in banks?

[usedtobedemgurl]

I know there is a FDIC guarantee, but can they take that away? Will there be any warning if they do end that guarantee? Is there anything about this in P25? I mean, cruelty is the point. Thanks.

[Big Blue Marble]

1. No

They already said they will eliminate FDIC. They want the banks to fail and for us to have no recourse.
Nothing is safe in this environment.

[CousinIT]

2. No. Not anymore. I plan to move

Mine to a credit union soon.

[MichMan]

4. What makes you think that is any better?

[Susan Calvin]

5. Well, at least the governance and deposit insurance are different

And Musk probably doesn't even know what a credit union is

[CousinIT]

21. Besides not supporting a damn big bank, deposits are insured by a different entity than FDIC. Nt

[MichMan]

22. I use a local small community bank

Smaller than a lot of big CU . There are a myriad of banks to choose from besides the huge ones.

People afraid that the FDIC is going to be abolished somehow believe that the NCUA will be untouched for some reason. They should probably just withdraw it all in cash and hide it in a coffee can in the basement

[Liberal In Texas]

62. A credit union is more unlikely to make risky investments with depositors money.

Unlike some big bank. They remove the regulations, the big banks are going to start gamboling like they're in Vegas. Like in the 1920s.

Plus, credit unions are generally member owned and the boards are elected by members.

This isn't to say CRs are completely safe. Probably just some degrees safer.

[MichMan]

64. I guess my local community bank with $1.1 billion in deposits and 13 branches is risky and gambling with my money

Last edited Sun Feb 16, 2025, 12:56 AM - Edit history (1)

yet a credit union in my state that has $12 billion in deposits, with 76 branches is preferable, just because it is called a credit union.

Not every bank is Wells Fargo or Bank of America in size.

[mountain grammy]

49. Credit unions are also covered by the FDIC.

[alwaysinasnit]

53. I believe credit unions are covered by a similar but different agency - the NCUA.

https://www.magnifymoney.com/banking/ncua-vs-fdic/

The Federal Deposit Insurance Corporation, or FDIC, is the government agency that insures customer deposits in banks and thrift institutions. The National Credit Union Administration, or NCUA, insures deposit accounts at federal credit unions.

For all intents and purposes, the types of coverage the two agencies provide are identical. Both offer insurance of up to $250,000 per depositor, per institution, per account category. We’ll dive deeper into the differences between the two agencies, the protection they offer and how to maximize your deposit insurance coverage.

anip...

[mountain grammy]

54. Yes you are correct

Thanks.

[alwaysinasnit]

55. ...

[SnoopDog]

57. That's not true...

They are covered by NUCA - National Credit Union Association

[Attilatheblond]

3. Hasn't there already been a plan of getting rid of the FDIC?

And with this bullshit move to only allow voters whose surnames match their birth certificate likely to make it difficult, if not impossible for most married women to vote, I have seriously considered putting my paltry little savings in the hands of a trusted male friend. I hold my breath every time I use my debt or credit card. Figure it's only a matter of time....

Edited for error in title

[usedtobedemgurl]

10. Have they? Is that one of the agencies they cut employees on already?

[Attilatheblond]

12. So far, seems the FDIC is still viable, but Trump's masters want banking de-regulated, so maybe a matter of time?

Quick search shows no action taken yet.

[usedtobedemgurl]

14. Thank you.

I have a brain I jury and common sense things, like searches, do not always occur to me. I appreciate you and your time.

[Attilatheblond]

18. You are most welcome. We will survive with each other's help in the coming years.

I have a knee injury, so about all I can do right now is sit at my computer and find stuff. We make a great pair!

Feel free to message me if there is any other searching you need help with. Can't guarantee I will get on it right away, but I check in with DU several times a day.

[usedtobedemgurl]

33. Thank you.

Sorry about your knee. I can search but sometimes I do not understand the results. Also, sometimes I do not remember to search or even ask for help. Some of my replies , shortly after my brain injury, asks if folks can explain it to me like I am a five year old. I used to get things and remember them. It is tough going for me now.

I hope your knee gets better.

[lostnfound]

31. Most of us humans are missing out on common sense in one form or another

You’re at least aware of it.
I love how many different perspectives can be found here at DU.

[usedtobedemgurl]

42. DUers are, indeed, very awesome.

Not sure I would have survived the bush years without this place.

[Skittles]

28. do NOT do that "trusted friend thing"

DO.NOT.

[Attilatheblond]

38. Ordinarily, I wouldn't but this friend is truely a good friend and I trust completely

[Skittles]

40. I still advise against it

yes indeed

[CousinIT]

68. I'm seconding the "trusted friend" thing. Esp if you're a woman and it's a male.

Just don't.

[jmowreader]

44. You KNOW what will happen if they get that surname thing through

Millions of couples will immediately seek divorce and immediate remarriage. In the remarriage the woman will simply revert to her maiden name.

The funny thing is, this push to only allow people who use the name on their birth certificate to vote won't stop a HUGE number of people who they don't want to vote to continue voting. Namely, Hispanics. It's pretty common in the Hispanic community for the wife to keep her maiden name - and, in fact, in Mexico it is against federal law to change your name when you marry.

[Meowmee]

60. I never married or changed my name

If you get married, it’s a good idea to just keep your last name the way it is. I remember at some point after my father died I had to get my mother‘s death certificate. And for some reason, I had to show them my birth certificate maybe I can’t even remember now. But I remember the woman at the court being annoyed at me that I had never had my name changed lol….so I didn’t have to fill out extra paperwork for that.

[Wiz Imp]

61. There is ZERO chance of that law passing

[Frasier Balzov]

6. If you wake up to an account balance of zero

be sure and thank the hackers whose friends were allowed access to Treasury data.

[usedtobedemgurl]

8. I guess we need fo print out banking statements now.

We can't even trust our government any more.

[Attilatheblond]

15. That reminds me, I MUST get accounts with the 3 major credit reporting companies & put a freeze on any new accounts

opened with my Social Security number ID. Have read that is advisable what with Elon's little army of computer vandals gathering all our numbers. Read that you can put a stop on any new loans or lines of credit now and take the stop off if you need to apply for any loans or mortgages. Sounds like something we all should do now that our federal ID numbers are out there in the wild thanks to the un-elected visa-abusing illegal immigrant who got his hands on everything that matters in our tech reliant society.

[Silent Type]

7. Think it's safe, until people lose confidence in government. At that point, better have gold buried out back.

[usedtobedemgurl]

9. Do you think the dollar will! Totally collapse?

[sweetapogee]

13. My opinion for what it's worth

is our biggest threat is hyperinflation.

[usedtobedemgurl]

16. I value the opinions of folks on this board.

I have entertained buying foreign currency that might hold up better than our dollar, but I do not trust myself researching what to buy. My judgement is not what it was before my brain injury.

[radius777]

48. The dollar isn't going anywhere

anytime soon, it's still the de facto global currency. The tech bros want to replace it with crypto but that's never going to happen, IMO, for a variety of reasons.

If one wants to invest in a safe haven currency, gold is the best bet, via gold etf's like GLD.

[sweetapogee]

63. for the foreseeable future

The US dollar is the safest currency in the world. That doesn't mean there are no problems, it just means that it's the best fiat currency out there.

[KT2000]

11. No way is it safe

They have shown they have the ability to claw back from banks accounts. If you are deemed a 150 year old social security recipient, or any other ignorant mistake, I do not trust these Nazis.

[Ocelot II]

17. Abolishing the FDIC would likely trigger a run on the banks -

exactly what the FDIC was created during the Depression to prevent. And the banks wouldn't like that at all (some banks are even calling for an increase in the deposit insurance cap). It doesn't look like FDIC is going anywhere (abolishing it would require an act of Congress), but there is discussion of folding it into the Treasury department. https://www.inc.com/chris-morris/fdic-what-is-going-on-trump-and-doge-raise-questions-for-depositors/91148162. Credit union deposits are insured by a separate agency, NCUSIF; I haven't seen any information about changing that.

[usedtobedemgurl]

23. Didn't trump just make one of his lackeys in charge of all credit unions?

[Ocelot II]

35. No, but the shutdown of the CFPB leaves some regulatory uncertainty

as to credit unions. https://archive.ph/7Tq2l

[usedtobedemgurl]

37. Thank you! We have three accounts with the credit union.

This is good to know.

[LizBeth]

19. I read they were getting rid of that safety net. When trump won I decided to take my 300k

and put it into a condo for now. Not the best to do with my money, but I do not trust it out there in finance.

[usedtobedemgurl]

24. Do you have a link about getting rid of it? I need to follow that story.

[LizBeth]

47. Google is just showing conversation about it, quick perusal. But down below there is

a post from Snoop with some about it. Post from Upinarms, I believe.

[usedtobedemgurl]

27. I assume it paid off the condo?

At least you will not end up homeless. I think that is a good use of your money. We were afraid about the economy, so next week we are paying off our house. At least that provides a small safety net.

[LizBeth]

46. Exactly. It bought the condo lowering monthly expenses as much as I can, protect money

and while getting old with healthcare will keep roof over head and not much they would be able to take from me if medical crisis. You are right on.

[Botany]

20. It depends on what information Musk's computer raiders got and what they do with it.

They could have installed some kind of sneak and steal “program” that takes a little
sugar off the top under certain conditions for certain accounts or just sold off your
routing and account #s to some off shore bad actors. Musk already was caught trying
to steal $80 from either NYC or NY State.

DOGE = department of grifting elons

[usedtobedemgurl]

25. I like YOUR acronym for DOGE.

So true.

Most of our accounts are not connected to taxes. I do not think they habe been accessed by the broligarchy.

[Botany]

51. Please feel free to use it.

Because if Musk and company were really interested in efficiency or looking for
waste they would have brought in a forensic accountant or a management consultant.

This is all about the grift.

Department of grifting Elons.

[LudwigPastorius]

67. I prefer "Department of Government Evisceration"

[MichMan]

26. I'm not at all paranoid my savings are going to be stolen

Or my Social Security will cease. If I was I would withdraw everything and bury it in a coffee can somewhere.

[usedtobedemgurl]

30. I am only worried about social security

Because I believe Putin owns the orange menace's ass and wants to destroy our country. I don't think all the protests in the world will prevent whatever Putin wants. Putin does not care about us and neither does the orange obe.

I did not say anything about stealing, though. I wondered about doing away with our money being protected. Since I posted this, I found doing away with FDIC is in P25. They want it absorbed into another agency. And if I am understanding the language correctly, they want to give allowance for banks to gamble with our money and consequences be damned. If they lose our money, so be it. I do not call that stealing. I just think it is playing fast and loose with our money.

[Blue Full Moon]

34. Musk needs every cent to go to Mars.

[usedtobedemgurl]

43. Hope he goes and stays there.

[Blue Full Moon]

45. He can leave on one of his rockets right now

[Lovie777]

29. Hell no...

[Blue Full Moon]

32. Problem is direct deposits, no checks. Almost like this was planned.

[usedtobedemgurl]

36. Not trying to be dumb....

Can you explain why dire t deposit is a problem? I am having trouble connecting the dots.

[a kennedy]

39. I've ALWAYS had what little $$$ I have, in local or regional Credit Unions.

[Scrivener7]

56. I switched over my checking account to a Credit Union a few years ago. But why would

our Credit Unions be safe from government interference?

(Not being snarky. Looking for reassurance, actually. I had assumed my CU would be subject to the same risks as a bank account.)

[Tbear]

59. "What ALWAYS worked" may end before we know it. Sadly.

People are sharing ideas, thanks for sharing yours.
My idea is that DU'ers are probably third or so in line of what is really happening. We might have a chance if we help each other and communicate.
Remain alert and move purposely.

[UpInArms]

41. Here is snopes

https://www.snopes.com/fact-check/project-2025-eliminating-fdic/

The FDIC — created by former President Franklin D. Roosevelt during the Great Depression as a way to restore Americans' trust in banking — is a U.S. government entity that insures up to $250,000 (per depositor, per insured bank, for each ownership category).

However, the more than 800-page Project 2025 blueprint document does not explicitly call for the elimination of the FDIC. Rather, it outlines a plan (on page 705) to merge the corporation with other federal financial institutions and to create new charters for financial firms that would "replace government regulation with competition and market discipline." The relevant section of the document reads as follows:

Merging Functions. The new Administration should establish a more streamlined bank and supervision by supporting legislation to merge the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Reserve's non-monetary supervisory and regulatory functions.

U.S. banking law remains stuck in the 1930s regarding which functions financial companies should perform. It was never a good idea either to restrict banks to taking deposits and making loans or to prevent investment banks from taking deposits. Doing so makes markets less stable. All financial intermediaries function by pooling the financial resources of those who want to save and funneling them to others that are willing and able to pay for additional funds. This underlying principle should guide U.S. financial laws.

Policymakers should create new charters for financial firms that eliminate activity restrictions and reduce regulations in return for straightforward higher equity or risk-retention standards. Ultimately, these charters would replace government regulation with competition and market discipline, thereby lowering the risk of future financial crises and improving the ability of individuals to create wealth.

[ForgedCrank]

50. No.

The response from Government during covid changed my views of many things. All of my life I trusted banks 100% and laughed at people who didn't. Then I saw what government did, locking me out, etc. I keep no more money in a bank now than what it takes to pay bills. The rest I pull out in cash, much of it is converted into silver and gold (in physical form) that I keep stored at various places.
I used to think the honor system was enough to keep government and business in check, but not anymore. I've seen it first hand, and now I understand why my grandparents had so much distrust in government and banks. Every time government does something like this, they get increasingly egregious and I'm no longer willing to believe there is a limit to what they could do. I mean really, are you going to be able to fight them?
Nope. And in the end, they don't care if you starve. We are nothing but disposable resources to them.

[madville]

52. If all the banks fail

Cash will also be worthless at that point as well. Crypto will fail as the global networks required to process transactions crash and online wallets/brokerages disappear. Physical gold and silver may still hold value.

Real items required to survive and barter with will be the currency. Food, clean water, shelter, livestock, seeds, fuel, medicine, ammunition, guns, etc.

[Meowmee]

58. I don't know

I hope someone who knows more about this type of thing will chime in here.

If you can, it’s probably a good idea to put some money into other bank accounts in other countries that are more secure. I’m going to ask my brother about this later.

[ThoughtCriminal]

65. The S&L Crisis in the 80s 90s should be a warning

Reagan/Bush Era Deregulation and lax enforcement was a big factor in a a crisis that required a huge taxpayer-funded bailout. I'm keeping my money in FDIC insured accounts, but I'm watching very carefully. It seems that this administration wants to roll back the reforms that were put in place after the bailout.

[LudwigPastorius]

66. For now, but the party is just getting started.

SEC Removes Roadblock for Banks to Hold Crypto