Is Your Money Safe in a Bank?
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- เผยแพร่เมื่อ 5 ก.ย. 2023
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Some recent bank failures have Americans wondering if their money would be safer somewhere else. We break down the actual risks!
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson, AFC®
Directors: Katie Graham & Andrew Matthews
Written by: Julia Lorenz-Olson, AFC®
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Dano Johnson
Fact checker: Yvonne McGreevy
Executive in Charge for PBS: Maribel Lopez
Director of Programming for PBS: Gabrielle Ewing
Assistant Director of Programming for PBS: John Campbell
Images by: Shutterstock
Music by: APM
Two Cents is produced by Spotzen for PBS
I learnt to manage my money through investments and it really works for me. They say money can't buy happiness but poverty can't buy anything.
There are so many ways to manage money and prepare for a relaxing future, we just always have to keep doing our best because whatever we plant now, we will harvest later, good or bad.
Investing wisely can significantly impact financial stability, offering peace of mind and more opportunities. While money can't buy happiness, managing finances well now will determine future outcomes. Let's continue making smart financial decisions.
As a novice, how do i get into investing properly and be profitable?
Angela Lynn Schilling is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment._
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
I work for a bank. The amount of people who have come to sign up after they lost all their money in a fire/flash flood/robbery is extraordinarily high. When asked why they don’t just open a savings before, they would go on some vague description about not trusting the banks. It made me painfully, painfully sad..
the governments made abundantly clear that they will save all the banks with PUBLIC MONEY no matter what. It is the governments we cannot trust !
It's funny that they didn't trust banks yet they trust a paper issued by a bank.
I'll never need a bank, I keep all my cash in my bum
The least they could do is put it in a fireproof safe. An put it somewhere hidden.
@@TheAyanamiRei Also if someone wants to keep large amounts of hard wealth then it could be worth putting some into silver and gold which are much more resilient to disasters.
If you have that much money sitting in your bank account, that means that you are not investing your money properly. Money sitting in the bank doesn't really do anything for you because interest rates are so slow. It's better to have $1 million in a place where it can make you 5% on returns rather than having that $1 million sitting in your bank account making you 0.5% returns.
Very true but Investors should also exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
indeed, most people downplay the roles of financial planners until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 220k with professional guidance.
Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes, who do you work with?
Greetings from Ireland I've been investing for almost two years and I barely even have a profitable portfolio ever since. I can read your comment and I was wondering. Can you name your expert?
CHRIS RYAN STEWART
bank teller : i said your money was in a safe in the bank, not safe in a bank.
The opening scene is reminiscent of those people who keep cash binders to track their spending. It may be that I'm from a country without a tipping culture & that's heavily reliant on bank cards (rather than using cash) but to me it's such a risk to have that much lying around. Not necessarily being burgled but your kids "borrowing" it or a house fire/natural disaster where you can't save it too.
A young son-in-law stole $1000 he found in his grandma's house. A very real risk unless you live alone.
@@glasslingerthat's a lot of money to have lying around cash, in my opinion 😅
@@boneappletee6416 You should have some cash on hand for handling disasters. Of course hide it very well!
In the UK deposits in each institution should be insured to a certain amount. Spread your money around so if something happens with one, you can still buy stuff.
They are insured in the UK
I always love the information delivered by both of you. Thank you so much guys, you and your team made great job!
It's been so long since I've watched a Two Cents video (I can't relate to most video topics because I don't live in the US) and even though I know he's the same person Philip looks like a new person to me. I think the last time I watched Julia was pregnant.
I was just thinking the exact same thing... As soon as I saw Philip's arm tattoo! 😂 But good for them, watching them grow and change with their audience is awesome. Makes them seem normal and like real people.
HAHA same for me as well. Phillip doesn't have a mustache anymore!!
The first few videos without the mustache were very unsettling 😂
He looks like he is aging backwards!
Prob witness protection + making TH-cam videos at the same time
I bank with a Credit union they offer Free Checking and Savings Account. for members the fee for the membership is a one time and you get it back if you close the account. no other monthly fees. i love it over BIG banks. FDIC coverage to is a bonus.
Haha 😂. Your credit union is not FDIC insured. It’s NCUA insured.
Could you do a video detailing different ways to invest in children? Like. What kind of options do we have other than a college fund? What kinds are there? What are the benefits and downsides to each path? For instance, we would prefer a fund that can be used for things other than just college. Consider it a starter pack for adulting.
I agree, you should always check into insurance from your bank, credit union, or banking institution. It's always a good idea to do your homework, especially on smaller banks or credit unions.
$250k is fine for non-business use, but is WAY too little for modern business use. Payroll could easily surpass this amount, so now the options are to either juggle multiple banks, or deal with risk. And what generay ends up happening is that companies are just very fast at rushing money out of the bank when they have concerns, which is exactly NOT what you want to have be the case...
You don’t think managing multiple business accounts solves this?
yeah but there is no alternative then cuz a business for sure shouldn't be keeping those sums in cash or other physical assets like gold and etc.
@@savagebeastking8703 Not particularly, a business with 150 employees at $50k salaries is already $300k twice every month. There are many businesses well above that employee count. And that's not taking into account monthly business expenses.
You'd be juggling dozens of bank accounts needlessly just to keep your funds secure from massive loss should one go under, where at most, you should only need to diversify into 2-3 banks.
@@savagebeastking8703”so now the options are to either juggle multiple bank….”
@@savagebeastking8703the administration would be insane. Imagine you need bigger amounts for different reasons, now you have to pool together from different accounts and consider what will already be taken from other transactions. Or imagine paying a supplier but using 10 different accounts from different banks and the banks are different each time.
Lots of space for errors but also fraud because it becomes so complex legit and fraud can't be kept apart easily anymore
A huge factor though of bank runs in the past was due to how bankruptcy was generated because banks invested heavily in local ventures which has ripple effects (e.g. bad crops). Things are globalized now so banks have more diversified investments. a la less Eggs in one basket. SVB wasn't that savvy in diversifying investments, iirc.
Love your channel, i'd love to see you make a video about travel expenses and budgeting for travels! ❤
Great video guys! I love your way of making content about complex issues. Here in Argentina we had a lot of events in history that made us don't trust in banks. Here inflation is a very big problem that affects every argentinian financial plans. Have you guys ever talked about financial strategies to try to overcome high inflation scenarios? Greetings from Argentina! 🇦🇷
I found this video really informative about banking insurance. Could you explain the main differences between FDIC and SIPC coverage, especially when it comes to different types of financial instruments?
I liked how the video explained the different types of deposit insurance and how they work. It was very informative and easy to understand. I also appreciated the fact that the video addressed the potential risks of investing, such as inflation and market volatility. Thanks!
That's right @dotpenji!
Thanks for bringing up this important topic since it's crucial to stay informed about the safety of our finances.
Your video is not just informative but attractive as well. I love how creative you are with your content.
Wow, the introduction that's worth really sounds like a symbol of striking it rich!
In places like 🇱🇧 Lebanon where there are limits on how much you could withdraw or access, it would make sense to keep some physical cash somewhere safe.
2:50 Wait, so in 2008, when a bank like Bear Stearns failed, people weren’t mad that the gov gave them money per se, but rather that the gov OVERPAID their obligated requirements? Wouldn’t it just be better if the gov is required to pay ALL of it, but force the banks to pay higher premiums in an intelligent distribution (in the same mindset of universal healthcare “insurance”)? In the end, unless a ton of banks are failing at once, wouldn’t that way mean the gov is getting more money from premiums than losses from bank failures?
Bear Stearns was an investment bank, not a retail bank (where individuals hold current accounts). They handle the investments of large corporations, and the bulk of their money isn't handled by FDIC insurance at all. FDIC insure savings and not investments.
The problem isn't that government gave them more money than they owed _in total_ (that would have been a very large amount). The argument is either that the government gave JPMorganChase too high a bribe to buy it and promise to honour the outstanding debts, or that the government shouldn't have stepped in at all, and the 'victims' deserved to lose their money for the risky investments. However the people they effectively 'lend' and 'borrow' money to/from are often other banks and financial institutions, so letting them go bankrupt would mean other institutions, which should have been fine, would also fall, domino style. It wouldn't just be the rich who would lose out, it would be everyone. So the government stepped in, and saved rich people from themselves to protect the system as a whole.
[overly simplified explanation]
How does a bank pay a premium to its clients? What is that? Never hear of a bank paying a premium. I genuinely would like to know. What does that even mean?
I think he means banks paying the insurance premiums. Like FDIC insurance premiums.
Man how I love this lovely couple and their wonderful channel
Love these videos. Informative and entertaining. Keep up the good work, guys! :-)
Thank you for that! 😃
Check BES, in Portugal. Clients lost savings of a lifetime and some killed themselves. Not a single penny to them until this day.
Exactly! This video is applicable to the US only.
Wow, that is absolutely brutal!
@@Mr.Not_Sure
No, it's not US only.
Other nation also has similar or even maybe completely different system.
This channel main clients is people who lives in US.
BES had the same protections for deposits (aka savings and current accounts) as described, albeit up to €100 thousand, as is the case for all Europe, the trouble is that we don't have the same protections in place for securities and investments accounts, and BES has fraudulently marketed these to their clients as 'just as safe'.
In Belgium, we had a somewhat similar case with Dexia. Many people were convinced to invest in the bank's shares, directly or via a co-op, because it was told over and over that it was safe. Surprise surprise, it wasn't, and many people are out of tens of thousands of euros.
Word to the Wise, that's $250k per bank, diversify and secure.
Most of us won't have to worry about putting more than $250k in a single bank.
Diversify and secure... Within the same bank.
It's $250k per entity per bank. You can easily have >$1MM in FDIC insurance from one bank.
If you have $250,000 in cash you really should invest. Inflation will eat away your savings.
Rather than bank going bankrupt, I worry more about my money losing its 20% value in a few years.
Not per bank. Per DDA or savings for each entity. You're a joint in another account, and that other account is insured to the max.
2:57 “In that particular case, [the government decided moral hazard was the lesser of two evils, just like it did in 2008].”
*Mario coin noises*
What do the millionaires do? Put 250k in increments in multiple banks? Lol
Yeah, the millionaires / retired do this for sure.
The multi-millionaires / billionaires are just eating the risk with careful analysis or caution-to-the-wind because there's really no other option. But don't worry, those folks earn enough money/interest and live well enough that they can be their own damn banks and that be a fiscally responsible option. 😲
Few people have a good reason to hold that much at a bank. The money is invested and, on top of SIPC insurance, there's no counterpart to a bank run for a brokerage firm.
Actually, yes. A lot of them do.
If you are ultrawealthy you have top tier services like a private banker who attends your needs and you can deposit large sums, like 20 millon cash for example, and is protected.
I know a millionaire that knows very little in investing other than putting up initial investment in a company that got big. They still put cash in the bank and move it around. A definite contributor to Washington mutual 2008 collapse by moving $250k out.
i LOVE YOU GUYS. PLEASE MAKE MORE VIDEOS.
Wow, you are amazing! You should do a video on the failure rate of currencies and inflation!
That Julia lady should be an actress or something with her comedic timing.... 🤔😉
Love to see a new video guys !
I thought I understood minimum reserve ratio, but now I realize that I don't. I thought that banks had to have 10% of the loans available in member bank accounts. Apparently in March, 2020, the reserve requirements were changed to zero. "The total removal of reserve requirements followed the Federal Reserve's shift to an "ample-reserves" system, in which the Federal Reserve Banks pay member banks interest on excess reserves held by them."
The best brief explanation of this is "Money creation in the modern economy" by the Bank of England.
Every explanation you're likely to have heard about how banking and money creation work is incorrect, including the one in this video. Commercial loans are not restricted by deposits.
you guys are just great
Fun fact, it's only called an acronym if you pronounce it as a word, like PETA. If you spell out the letters, it's called an initialism.
Normally, I would be annoyed with something like this, but that's actually interesting.
Damn. The 2 cents intro is literally a sound of getting rich
What if there was a war betweeen our country and an another one? How would it affect our savings? Would our currency start to drastically lose its value?
This thumbnail is so cute and silly. 😅
0:48 I work in a bank and you might be surprised how many people don't, in fact, know that.
0:39 Ryan Gosling is that you?
FDIC is drained thanks to payoffs of the rich account holders in SVB.
I've figured it out - with the longer hair and no mustache, Phillip looks like Matthew Mercer's little brother.
I love Julia❤
Well, I my bank closed and did not tell anyone, I had to wait for FDIC, to pay me.Yes, I was part of the scandal in California.
I wish two cents would do a video on how to find a financial planner or do you even need one. Do they have such a video?
If you have a million then yeah you might need a financial manager. But it's more efficient if you do it yourself.
Honestly you probably don’t need one. What are your goals? If it’s just saving for retirement or for a house, there isn’t anything complicated about it
I think they did create a video for it. Almost positive I remember the artwork too
I think the whole point of the channel is to keep you from needing to hire one of those mountebanks.
No, the banks are not safe! There is a bail in law that states a bank can take your savings without your permission and give you stock in the bank in its place. They take your money and 'sell ' you worthless stock in a failed company. The bank.
The FDIC can only cover about 1% of all bank holdings. The banks are so deep in debt, if a few biggies go down they'll all go down just waiting for the big short 2.0 to actually do what 2008 didn't...the great reset...
Is it true that in the fine print, the government reserves the right to pay FDIC to people over a 99-year period? 🤔
Yep, it should do the trick.
Two cents is absolutely one of the best channels on TH-cam
Don't worry if you bank with #MeridianCU💳 then you are safer than most banks🇨🇦! 🌎💘💰
It’s like that guy in breaking bad said.
“It’s federally insured. It’s a victimless crime”
Hmm who was that?
@@feynstein1004 The guy who got his head crushed by the ATM machine
@@vikingthedude Oh yikes 😅
Everything has risks, but what you think as high risk is lower then you think, and what you thing is low risk is higher then you think.
What about bail-ins? Why did you not mention them?
Could you make a video on pet insurance and how to buy a car
Pet insurance is a scam.
Got to love a Fourth Wall break 😂
“I got enough money in the bank for the two of us.” Ludacris
It is called initialism, not acronym.
Aaaand it's gone!
Was hoping someone would post this.
Did I miss it or did you leave out Savings & Loan deposits have their own insurance corporation?
FDIC
They mentioned the NCUSIF at 3:36 if that's what you mean
Well I stand corrected. They used to have a separate insurance but they have been under FDIC for quite a while
I miss this man’s mustache.
Skrillex hair AND Dad Mousetash at once
not sure about USA but here in Canada my bank actually stole 288$ from me , so I'm going all cash like old days
What would Peter Schiff say about this?
Keep my deposits under $250K ? way ahead of you :)
What if people have more than $250,000? Will anything over that be insured?
No, not in the same institution I believe
A
Money in bank it's not an investment, but at least the money are safe (or maybe not...?)
I am from India 🇮🇳🇮🇳🇮🇳
Cool
My Tesla Tower is an Excellent Passive income Generating Asset it Generates a Interest of 12 Marks and Rental Income of 22 Mark's
your channel is great and all but one major thing I noticed is that you never mention any alternative to capitalism and never acknowledge the problems coming from the system itself
It’s better to buy T-bills
I completely forgot I was subscribed to this channel. I liked it and was wondering if 2 cents made videos anymore.
TH-cam hasn't notified me of a video since... a mustache ago?
Normies start to wake up
we're not POST covid -_- very much still here, people still getting sick, there's an outbreak at my work right now
get a booster. stay safe
Then if your house burns down with your money under the mattress then you're F'd
Unless is SVB, and your money is insured till 5 trillion dollars. The only thing yoi have to do is to lobby the government
The government will just print money when banks fail, making all money less valuable. Inflation nation 😂
Inflation work both ways, up and down.
When gov print money and when production suddenly fall.
Gov print money is a slow process.
It's more likely for production suddenly fall, because of pandemic, natural disasters, or wars.
Or when other nation suddenly left dollar.
I mean… gold and silver bullion as well as cash stored in a fire-proof, flood-proof, tool resistant rated, safe at home isn’t exactly a bad idea.
It’s always a good idea to keep quite a bit of your wealth “off-the-books” if you know what I mean. Protects you against bankruptcy / divorce / lawsuit / etc. They can’t take what they don’t know you have. 🤷🏻♂️
No one will ever know where I have my lockers full of beanie babies
That’s ridiculous. Storing a significant portion of income in cash or other assets doesn’t help you. Hiding income from a divorce is illegal. Hiding assets in bankruptcy means that your debts won’t wiped. As for a lawsuit the amount the other party earns depends on the damages you have caused not how much you own so if the settlement is more than your net worth you will simply be in debt at which point may want to declare bankruptcy.
@@suvidminecrafttutorials4175 NPC
Is it safe if you haven't paid taxes on said money? 👀
Thats a great idea but the FDIC doesnt have enough funds to make everyone whole.
No
Someone gets your account number and clears you out and the banks say s you must have been in California
Me caen bien pero Dios mio que es ese pelo
First- Shoutout to the animator who did a pretty good btc chart depiction! Second: Why didnt you at least mention bail ins?
There's always been an "empty space" in the theme music at 0:46 (0dB on the waveform), right before it goes into the final "lick". Any chance that can be patched? 😅
(Or maybe it's just not the cleanest transition)
I tried really hard to listen for it and I can't hear it lol. Sounds okay to me
@@robertwright8844 I guess it's easier to spot and be bothered by it on headphones, lol. Hey, power to you!
Nope! I hear it too! it just drops out for a quick second. I notice it every time even without headphones
Will this protect customers from identity theft that the thief impersonates users and withdraw money?
Nope
It insured you from the bank screwing up
Thanks To Roosevelt, best president 🎉
Laughs in Argentinan
Thanks for prepping the population for the banking crisis
I don't put money on bank i spent it all in gold investment 😅 maybe I m dumb?
Can we get Canadian versions of these videos..... Thanks ❤
As much as this makes banks feel safer. It also feels like this highlights how grossly unsustainable they & "the system" are. "Too big to fail" should not exist. Government should not prop up bad businesses.
Sometimes people forgot that money is just, a paper.
It's just a paper that has a number on it.
And why it's valuable, because government says so.
you should be president
As is any other form of money. If enough people will trade it for stuff, it’s good enough to be money.
Inflation is Boss...
FDIC can refund your money... no problems there. What about the concerns that the money is now worthless??
What a strange comment..? You can go to any store and exchange US money for goods....
I dont know, dudes. I think crypto and all these ICOs are just a bubble. Well, crypto is good for transfers and so on, but I dont engage in trading and staking either. Its too risky. My friend recently lost $5000 there. I invest crypto in real business
Just don’t put more than 250,000 in each account and you should be fine in USA
Lets see if FDIC can withstand the next global depression. It could be around the corner or decades away. Counter-party and self custody both have risks and people underestimate risk.
Is she pregnant 🤰?😮
MOST rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them
Sounds good😊How do you do that? I'm interested, how do I go about getting started?
I'm from Los Angeles , I and two other of my friends tried her immediately we testified her performing wonders
I had my first encounter with Mrs Brenda in the comment section here on TH-cam and since then, trade has become easier and profitable, She's the most sincere broker I have every worked with.,
Scam. Tired of these comment chains
You’re stupid if you believe this. Rich people are rich from inter generational wealth and exploitation
They may insure dollars. what they cannot insure is value of those dollars. So it's not safe at all in bank. In fact you have almost 100% accuracy, that you will lose. Not in number of dollars, but in what you can buy with it
Bring back the moustache and short hair. You looked way better
The Federal Reserve, despite its misleading name, is in fact a type of bank known in the rest of the world as a central bank. Explained Liaquat Ahamed, a former employee of the World Bank turned financial historian: "Boiled down to its essentials, a central bank is a bank that has been granted a monopoly over the issuance of currency. This power gives it the ability to regulate the price of credit - interest rates - and hence to determine how much money flows through the economy." Central banks, in other words, are the ultimate trusts; they, and they alone, are authorized to issue a nation’s money supply, giving them complete ascendancy over world finances.😮 let's get back to constitutional money the gold standard.
No, let's not.
I don't get this obsession with the gold standard.
Whoever has the most gold wins. Which wouldn’t be US.
it is not you money. bank can block your account whenever they want without reason