This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Is Your Cash Safe at the Bank?

Leonard Wright, chair of the society's personal financial planning committee, suggests consumers scratch 10% off the FDIC's limits when figuring out where to store their funds, otherwise they may lose interest payments. One of Wright's clients initially held $100,000 in a CD at IndyMac, which accrued interest over time. Luckily, the client was able to negotiate with FDIC representatives to recoup half of the interest payments, but some would look at the situation as a glass half empty rather than half full.

Wright suggests that consumers diversify their accounts, and consider holding funds at more than one bank if they are very concerned about insolvency. He says consumers have become complacent in the decades that passed since the savings and loan crisis of the 1980s, which caused hundreds of banks to collapse.

"Time passes and people feel comfortable with investments and putting their nest egg all in one basket," Wright says. "If they've got a couple million bucks in the bank, I suggest they move things around a bit."

Wright suggests consumers with plenty of cash diversify their investments and take a look at brokerage houses, which tend to provide "a little bit more" insurance than what is offered by traditional banks. And while clients might think the biggest brand-name banks are the safest, some of them have more exposure to risky assets than small community banks.

"There are a lot of very high-quality, local community banks that have been very boring over time," Wright says, "and boring is good."
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DSL $17.61 -1.40%
DRL $0.11 0.00%
WM $53.06 -0.66%
AAPL $111.79 0.17%
FB $94.12 -0.15%


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs