Eggs in One Basket

One thing the recent failure of banks has taught people is not to keep all of your money in one place.  Obviously you want to make sure you divy your money up among different institutions to stay under the FDIC limit, but even if you are well under the limit, it is a good idea to keep some money in other places.

Usually when a bank fails the government goes to great pains to make it happen over a weekend so it can be back up and running on Monday.  However just because that is what they have done in the past doesn’t mean it will always continue to be that way in the future.  To be safe you should make sure you have enough money to live for a week or so in two different places.

This isn’t a huge risk, but a little thought ahead of time could minimize your inconvenience if a bank does happen to get seized during the middle of the week or if it take the government longer to reopen it than what they normally do.

No related posts.