What type of bank is best to keep one's money in?

[Kat45]

I'm no economist but I can see that the US economy is heading down the crapper. Bottom line, I don't trust the solvency of banks at all. I don't have much money but I'm a saver rather than a spender and I don't want to lose the money I have been saving. If the US dollar doesn't lose all its value--I know that's an if--what is the safest thing to do with my money so that I won't lose it? I'm not asking for financial advice as much as asking what those of you who follow economic issues think will be most stable.

Am I better off going with a community bank, a local bank in my town? I'm thinking of putting it all in such a bank, thinking it would be safer since it's most likely not involved in all the subprime stuff, but I don't know. I have a small IRA CD maturing in a couple of weeks, which is in another bank in town, a bank owned by Royal Bank of Scotland. I have a checking account for paying bills, which is in a large bank (Bank of America), which I don't trust. I'm just trying to do research as quickly as I can because I need to make some decisions very soon. Opinions, please.

[AX10]

1. As a rule of principle, I will not have anything to do with Citibank.

[eppur_se_muova]

2. Piggy. nt

[babylonsister]

3. British West Indies? This sucker was flying that flag:

and I kid. We use a credit union bank.

[tularetom]

4. Try this one

[Hobarticus]

5. I've always used a local credit union...

...and have never worried.

You will likely get a better return on your savings, and you actually will have a vote to determine your CU's board of directors, regardless of how much you have in savings or checking. Still FDIC insured, so your money's safe.

Best part? While they have to be solvent, technically credit unions are non-profit, so there won't be crazy fees and they're not obsessed with pushing loans and other services you don't want or need. And since they are more locally-based, and not a national chain, they re-invest in your community at a much higher rate.

My wife and I have our own accounts....mine at a credit union, hers at her old bank. The lousy service and the fees and the solicitations from her bank are insane, but she's so used to it now (and loathe to change) that she just comes to expect it. I have had to call my CU maybe three times in ten years with an issue, and I've financed all my cars and our house through it. Totally pain-free.

I'd look into it, seriously.

[Kat45]

7. Aren't credit unions tied to companies or industries?

I always had the impression you had to 'belong' to something to use one. (teacher's credit unions, firefighters' credit unions, etc.) I didn't think just anyone could go to a credit union and use it. Am I wrong?

[MercutioATC]

10. Not for a long time now...

...being part of the eligible group can be as simple as "living, working, going to school or worshiping" in a certain geographical area (those are the rules for my credit union).

[Hobarticus]

13. They can be, but most have open enrollment...

just have to live in a certain area to be a member.

[CabalPowered]

17. CUs are the way to go

I'm getting 5.05% on my checking account, no minimum. And free atms everywhere. They refund all atm fees at the end of the month.

I also belong to a much smaller CU where I have my car loan. There's around 200 members. The "branch" consists of one teller, a cheapo desk, and cinder blocks and plywood for shelving.

[virgdem]

6. The First Mattress National Bank...

what with the way Banks are going, mattresses seem a safe bet.

[happyslug]

23. With the Dollar in decline a bad bank

When Russia was in its economic Troubles in the 1990s, a lot of people kept their money in their Mattresses, then Russia declined the old Currency no longer valid and unless it was in a bank you lost the entire value of the Currency (Some conversions was permitted but was limited).

If you keep thing sin your home keep REAL things. Gold, Silver, Food, Gasoline. Something you can store and sell later. I lean to Gasoline, it will always be in demand the the price is upward. It is volatile and you need an adequate Storage System, but if you are in the Boondocks getting a 500 - 1000 gallon tank may be worth the money. If you heat with oil and use a Diesel Vehicle, home Heating oil would be a better choice. In a push you can use it in the Diesel (It is illegal to do so for it is NOT taxed, but the oil itself is the same).

As to Gold and Silver, unless you have someone that will take it in a pinch, not worth holding. The values are up, but if the situation gets so bad that banks are closed, where would you use the Gold and Silver? Gold and Silver should be part of your plan, but secondary to other savings items.

That brings us to food. Food is expected to go up for at least the next year. More to do with farmer switching to Corn for Ethanol production than anything else. Food is something people need every day (Try to do without for a few week). Thus if things go bad having some food to fall back on will be more valuable than Gold or Silver (You can NOT eat Gold or Silver). I would try to go with food that do NOT need Refrigeration (i.e. stay away from meats). Bread do NOT last long when cook and most people do NOT cook today, so I would stay away from Bread or Flour (Unless you have a secure source of heat AND someone in your house is COOKING Bread today, then Flour is probably your best choice). I would opt for pre-made noodles, These can last a long time and do NOT require much time to cook.

In addition to the Noodle (Or Flour if someone cooks) I would buy canned corn, peas, beans etc. These can be use with the Noodles or other main meal (and can be the main meal themselves). If you have pets, buy food in bulk for them. Cats need meat, thus you must have cat food if you go meatless. If you have a dog, he can go meatless, but you are better off with dry dog food for him. Make sure you have food for the pets in addition to yourself, your spouse and your family. Extra food should be stock for trade. I do not expect a general breakdown in society, look at Russia in the 1990s for an example what will happen, so we can ignore the right wing gun nuts (Such nuts are choice that you will need defend your property, that did NOT occur in Russia in the 1990s, people tend to work together in hard times, and more so if you have food to give your neighbor in exchange for work including working together on a common project like setting up a Garden to provide food for everyone).

Just a comment on keeping money in a Mattress, there are better things to keep at home than your cash.

[Extend a Hand]

8. Here are some bank performance rating sites

from this article:
http://globaleconomicanalysis.blogspot.com/2008/02/s-sniffs-horse-hockey-calls-it-rose.html

Who's Holding The Bag?

If you want to know who's holding the bag if the monolines fail, simply look at the who's who list of sponsors.

Who's Who Bagholder List

* Citigroup (C)
* UBS AG (UBS)
* Royal Bank of Scotland (RBS)
* Wachovia Corp (WB)
* Barclays (BCS)
* Societe Generale SA
* BNP Paribas SA
* Dresdner Bank AG

The two key sponsors (Citigroup and UBS) were on the list of recommended shorts by Meredith Whitney. See Analyst Meredith Whitney Asks Banks "Where's Waldo?" for more on expected bank writedowns and dividend cuts.

I guess I would avoid any one holding that bag.


To check a particular bank--
Here's a cite where you can check the banks "grade"
http://www.thestreet.com/tsc/ratings/screener.html

Here's weiss ratings best and worse list.
http://www.weissratings.com/HL_Bank.asp

Here's Ambest performance rating site:
http://www.ambest.com/banks/bankingmore.html

[cliss]

9. Here's my suggestion ~

Keep some money in the bank, just to be able to cover checks, debit card purchases that kind of thing. Maybe just a few hundred dollars' worth.

Next: get a fireproof safe, like the kind they have a Office Depot. We bought one, it was only $39.95. It's small, but it holds lots of stuff. Passports, documents, gold jewelry that kind of thing.

We put ours in the closet, on top of the water heater.

Next: Take out as much money as you can afford. Like maybe $1,000 or $2,000. Get it in small denominations, like $5.00 bills or $1.00 bills. Get a nice stash of coins also, some variety is good.

NEXT lock the thing up and sleep soundly at night.

You can use a bank deposit box, but keep in mind that if there is any kind of meltdown or if there is a run on the banks, you will not be able to access your money.
I have absolutely NO faith in the banks. I believe they're all broke, and I'm just waiting for the next shoe to drop.
I also have no faith in the FDIC. I heard that fund was raided several years ago, so there's nothing left to protect depositors' accounts in the event of a bank failure.

[FirstLight]

11. You got a coffee can & shovel?

...realistically, money wil be worthless anyway, best to buy land and start planting food, get off the grid, etc...

good luck

edit for typos, sorry typing faster than my brain! lol

[unhappycamper]

12. I'd suggest you take a look at the Telephone Worker's Credit Union.

If you breath, they'll talk to you.

I've been a member there for almost 30 years now. My one credit card is from TWCU. I refinanced my mortgage a few years ago with them and am very happy.

[Warpy]

14. The Royal Bank of Scotland is one of two financial institutions

I've kept in my portfolio and it's doing well in comparison to the ones I dumped. Without examining their books closely, I have no clue as to their exposure to hedge funds and the bogus securities supplied by hedge funds, but in the short term, they seem solid.

BoA made a huge blunder in acquiring Countrywide, IMO, and has shown little sign of reining in the incredibly bad management at that company. Whether or not they can survive it is anyone's guess. Your account there is insured, meaning even if the government has to print more money to cover it, you'll get it. If they print more money to cover insured accounts, you won't get what it's worth, but you'll get the face value.

I keep accounts at two separate megabanks, one for the serious bucks and the other for the bucks I use for online purchases. If anybody hacks my ATM, they won't get much. I have my CDs at a small local bank.

There is no way to know how this will play out and which banks will be allowed to go under. Some will, I'm sure, until the thieves are regulated back into the numbers games and other small time rackets.

The only thing I can be sure of is that we're all going to get hurt, no matter what we do. We simply can't know at this point what the most prudent course of action is.

[143tbone]

15. Mix it all up.

You will find out from reading this economy forum and many others on the internet that no one knows how this is all going to come down. So I recommend keeping some money in Money Market funds, some in IRA's, a small amount in your LOCAL bank, buy that safe and put a few thousand if not more in it, buy a little gold but keep your eye on price per ounce as a new administration comes in, plant a garden, order in bulk from your local food coop and start eating what you are ordering so you get used to fine-tuning your diet, black beans, brown rice, dried cranberries, canned beans, nuts, canned veggies, soy beans, gallon glass jars, juices.
Learn how to dehydrate foods.
Use your common sense and decide what you and your family will need on all the different levels of catastrophe. You will learn a lot in the process and even if nothing happens you will have fine-tuned and simplified your life in such a way you might never go back to your wanton ways. Wanton is a comparative term in this case.

[Librado]

16. HSBC

Or Chase, or Citibank.

[SlowDownFast]

18. Pfffft!

Good one.

You made soda pop come out my nose.

That was a joke, right?

[SlowDownFast]

19. Short term Treasury Bills.

I posted a thread about this a month or so ago:

Better Than FDIC insured banks:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x33386

Short term T-bills can be moved to just about any (solvent) bank in the world, after maturity. 4 week T-Bills are a good choice - just let it roll over every 4 weeks.

Other than that, the Bank of Sealy (your mattress) and basement full of foodstores.

Seriously: get a good safe - you're gonna want CASH on hand.

I also have some in gold and silver - which is NOT in a bank's safety deposit box.

There's also Everbank, which is out of St. Louis, I believe (google it) - you can invest money in the currencies of your choice there.

[w8liftinglady]

22. thanks for this post.I don't have much

but feel I need some safe,disposable income...as my 401K withers away

[Doctor Cynic]

20. Change some of your $ to euros?

[AlienGirl]

21. Buy gold with it and keep it in easy reach for when Bug-Out-Day hits. nt

[SlowDownFast]

24. Kicking this because it's only right, right now. n/t