Thanks to predator lending by many banks, they have thrown the economy into a downward spiral. Fannie May and Freddie Mac have gone toes up and have lost billions. It’s so bad that the government had to take them over this week to prevent more losses.
But well before that event, many small banks have began to go under. So if you have a bank account with any amount of savings in it, you need to keep your eye out for trouble. Some banks are more involved in home loans which put them more at risk for failing. You need to contact you bank and ask a lot of questions about their involvement in home loans. The more involved in home loans, the more you need to worry and consider switching banks.
Also most banks will tell you they are FDIC insured and you’re protected up to $100,000. This leads you to think that any amount up to $100K is safe. That’s not true at all. The devil is in the details. They say “up to”. This “up to” amount can be any amount under $100K and they can change the amount any time they feel like. This about can be $25K. So if you have $100K in their bank, you could have $75k at risk.
So don’t let them pull the wool over your eyes with the “up to” speak. It means nothing at all. You need to find out the EXACT amount they are insuring.
It’s your money. You need to know the facts and protect your fortune.