If You Hold More Than $250K in the Bank (and even if you don’t), You Need to Know This.

You’ve heard of the FDIC– it’s the Federal Deposit Insurance Corporation. It’s an independent insurance agency that was created by Congress to insure bank deposits and inspire public confidence in banking institutions. It was created in 1933, after the stock market crash and subsequent bank runs that caused the Great Depression. It was established as a desperate move to instill greater trust in the American banking system. Congress passed the emergency legislation without trouble and FDR quickly signed the law to create this “insurance agency.”
Most people know that when they put their money in the bank, in a best-of-the-worst-case scenario, it is insured against the event of a bank collapse. Of course, if the currency or entire economic system crashes, it won’t make much of a difference if your money has insurance on it or not.
You can see the signs on most teller windows touting the FDIC’s protection of $250,000. It’s there to offer you some peace of mind. But what most people don’t realize is that their coverage is limited to only $250k per person, not per account. That means if you hold one or multiple accounts totaling more than $250k, any dollar you have over that amount is uninsured and could be subject to loss without replacement.
But even if you have less than $250k, your money is still at risk. That’s because the FDIC doesn’t actually have enough money to cover everybody. The Deposit Insurance Fund is only mandated by law to hold enough to cover 1.15% of all deposits! Just like your car insurance agency, if everyone needed to file a claim at the same time, the agency would go bust in an instant and most people would get nothing.
$250,000 dollars won’t even get you very far in your retirement years these days. Most people will need more than that to live. With the continual decline of the dollar’s purchasing power year after year, converting a portion of your retirement into a gold and silver IRA is a great way to hedge against further currency devaluation and to move some of your money outside of the financial system.

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