FDIC lifts 250k insurance

[WantMyTurboS]

Went to branch today and was told by branch manager that the standard 250k insurance was lifted to an unlimited amount today. My wife just found on line that from Dec 31, 2010 to Dec 31 2012, all non-interest bearing transaction accounts are fully insured regardless of balance of account and the ownership capacity of the funds. Does anybody know why? Does this mean they are getting ready for RV! This is getting exciting... GO RV!

[mnsnowman]

Good, but old news. Thanks for the post.

[hablrob]

Has zippo to do with RV.

Couple of weeks back Obama met with the heads of major US banks begging them to start hiring again. This is being done to help banks image with US consumers and improve reserves.

This will help banks, in turn should lead to some hiring by banks, which will help Obama.

End of story.

[hey]

Non-Interest bearing accounts = unlimited insurance coverage through 12-31-2012.

Interest-Bearing accounts still have 250K limit on FDIC coverage.

This could help RV by making peeps feel comfortable that they can RV to one account and give them some time to diversify into other accounts and investments. However, how long will you want to leave your money in a non-interest bearing account? It will become less valuable as inflation eats away at it.

[allinxpress]

Has zippo to do with RV.

Couple of weeks back Obama met with the heads of major US banks begging them to start hiring again. This is being done to help banks image with US consumers and improve reserves.

This will help banks, in turn should lead to some hiring by banks, which will help Obama.

End of story.

How does offering unlimited coverage help hire people and help with consumer image? Sorry, but I respectfully disagree with your assesment. as soon as I heard about this, I thought this was one of the most telling signs of the positive things headed our way. It all makes sense if u look at the big pic... and when the RI happens (cuz I think that is what will happen, then it will rise over time but has to be competitive with Kuwait), the banks will make money two ways: transaction fees and the money u leave in thier accounts. When the RI happens, the global economy is going to get a much needed boost...IMO

[Jim1cor13]

Has zippo to do with RV.

Couple of weeks back Obama met with the heads of major US banks begging them to start hiring again. This is being done to help banks image with US consumers and improve reserves.

This will help banks, in turn should lead to some hiring by banks, which will help Obama.

End of story.

Quite true. Nothing to do with RV. As a matter of fact, I wrote about this

in another thread. FDIC can in no way, shape or form HONESTLY make

the step and the claim they are making. In other words, there is more to it.

Think liquidity...banks are in trouble, have been for a long time now and it has not

improved even with Mr. Bernanke running the presses overtime. It is a sinking ship

that few have yet to admit to, but more are beginning to understand a nation that

has allowed criminals to run the institutions, then reward them for their mistakes

and costing trillions of dollars laid on the backs of taxpayers just to keep this system

afloat. It is a joke and no one wants to stand up and call it what it is.

A reminder: Do not allow this supposed lifting of the insurance ceiling to give

you a false sense of 'security'. FDIC has no means to honestly do this, and again another

action going on so few take a close look at. Remember, "liquidity" is the issue, and just

taking this step should reveal some underlying problems.

Be careful and keep learning to manage your wealth in safe manner and safe vehicles.

It is not what it appears to be, which could be said about far too much these days.

Thanks hablrob for your input on this. Sometimes, certain things are simply too obvious.

Don't get me started on the wallstreet mess and their bankers

I just cannot understand how some criminals were actually rewarded through all of this

the last how many years? How many were prosecuted??? Interesting isn't it? And little has changed.

All my best!

Jim

---

[hablrob]

you are grasping at anything you can. this is not the sign we need. if wish it was relevant.

traditional banks have to compete with brokerage houses that insure accounts way beyond 250k, on all their accounts. (yes, it's private insurance-not all fdic, though these days it would be hard to tell which one offers better safety)

so, they loose the big buck investors all day long to the brokerage houses. if the traditional banks can have at least something going for them to improve confidence with the big deposit folks...higher insurance limits on some accounts, it will increase their revenue, which could/can lead to hiring.

this deal is only on the 250k non-interest bearing accounts, so it's far from a sweat heart deal for banks..but it's better than what they had before.

"How does offering unlimited coverage help hire people and help with consumer image?"

Larger deposits in accounts lead to high revenue for banks..Banks make more $ they'll hire more folks.

People don't trust banks = poor consumer image, higher insurance on accounts can boost confidence.

GO RV & May god have mercy on the pumpers. They are going to need it.

How does offering unlimited coverage help hire people and help with consumer image? Sorry, but I respectfully disagree with your assesment. as soon as I heard about this, I thought this was one of the most telling signs of the positive things headed our way. It all makes sense if u look at the big pic... and when the RI happens (cuz I think that is what will happen, then it will rise over time but has to be competitive with Kuwait), the banks will make money two ways: transaction fees and the money u leave in thier accounts. When the RI happens, the global economy is going to get a much needed boost...IMO

[WISHBONE]

I mentioned this to my banker.....he said he has heard nothing of this.

He is the VP of the bank and I have known him for 20yrs.

He stated if this was true, everyone (in the bank) would need to know this to inform their depositors!

anyone have a link? this is in the news section....right?

[Dinar Holder]

I yt

The RV will help the banks in a huge way.

Go RV...........

[DirtyMartian]

I mentioned this to my banker.....he said he has heard nothing of this.

He is the VP of the bank and I have known him for 20yrs.

He stated if this was true, everyone (in the bank) would need to know this to inform their depositors!

anyone have a link? this is in the news section....right?

Here ya go. Under Summary. It's old news, but was re-reported in the past week

http://www.fdic.gov/news/news/financial/2010/fil10076.html

[MikeyBoy909]

Wishbone you might want to e-mail him the link if he wants to keep his job lol

[shaneelstar]

I mentioned this to my banker.....he said he has heard nothing of this.

He is the VP of the bank and I have known him for 20yrs.

He stated if this was true, everyone (in the bank) would need to know this to inform their depositors!

anyone have a link? this is in the news section....right?

Might want to get an New Banker, if he doesn't know this about his accounts................

[cbs71]

Might want to get an New Banker, if he doesn't know this about his accounts................

LOL...no kidding!

[Carrello]

I mentioned this to my banker.....he said he has heard nothing of this.

He is the VP of the bank and I have known him for 20yrs.

He stated if this was true, everyone (in the bank) would need to know this to inform their depositors!

anyone have a link? this is in the news section....right?

IF YOUR BANKER HAS NOT HEARD OF THIS, YOU NEED A NEW BANKER.

FOR ONE THING, THIS IS OLD, OLD, NEWS FOR ANYONE THAT READS A NEWSPAPER.

[blueskygal]

I dont see how raising the insurance to unlimited is going to bring in more business for the bank. I agree it may boost consumer confidence but really? How many affluent saavy investors woudl prefer to have their 1 million sitting in a NON INTEREST bearing account losing value to inflation?? And besides an insurance guarantee doesnt mean anything if the bank is declared insolvent or taken over through the Fed Friday night follies - this does not make me feel any more secure at all. IMO

[gallinipper]

where will the fdic get the money to cover it? (rhetorical)

[gatoraces]

I dont see how raising the insurance to unlimited is going to bring in more business for the bank. I agree it may boost consumer confidence but really? How many affluent saavy investors woudl prefer to have their 1 million sitting in a NON INTEREST bearing account losing value to inflation?? And besides an insurance guarantee doesnt mean anything if the bank is declared insolvent or taken over through the Fed Friday night follies - this does not make me feel any more secure at all. IMO

exactly. if it was on interest-bearing accounts then i would agree that it has nothing to do with the RV. Because it is only non-interest-bearing accounts, people might need a quick one stop place to drop a lot of money for a short time. Otherwise, just open multiple interest bearing accounts. Who would put $2 million in one no interest account when they can put it in 8 accounts drawing interest? does not compute.

[Qman]

I mentioned this to my banker.....he said he has heard nothing of this.

He is the VP of the bank and I have known him for 20yrs.

He stated if this was true, everyone (in the bank) would need to know this to inform their depositors!

anyone have a link? this is in the news section....right?

I got this from my Bank yesterday.

[putney]

I went to two Bank of America Branches and called Wells Fargo they said they had opted out of the unlimited insurance Non interest accounts, and weren't going to participate in the program

FDIC allows a choice by the banks.

Sent email to Ali asking if he knew what banks were going to participate in program (he deals with BoA, Wells Fargo, and Chase--my understanding) haven't received a reply yet

Putney

[mythunter]

I dont see how raising the insurance to unlimited is going to bring in more business for the bank. I agree it may boost consumer confidence but really? How many affluent saavy investors woudl prefer to have their 1 million sitting in a NON INTEREST bearing account losing value to inflation?? And besides an insurance guarantee doesnt mean anything if the bank is declared insolvent or taken over through the Fed Friday night follies - this does not make me feel any more secure at all. IMO

You hit the nail on the head bsgal.........honestly, why would any person put their new found wealth (aka post rv money) in a NON INTEREST bearing account. I may sound dumb, but who in their right mind with lots of money or those about to get a bunch would opt for this option? I do not see how this new rule has any bearing on me or the RV.