Smart to keep $25,000 in a checking account?

[BFranklin]

We all know the story with banks...do you think its smart/safe to keep $25,000 in one checking account?

[The Gold Standard]

For how long?

[angelatc]

Its insured.

[teacherone]

Not any more. The internet knows you have it!

[tfurrh]

Yes it's very smart. Let me give you my acct number so you can make the deposit. :)

[V3n]

We all know the story with banks...do you think its smart/safe to keep $25,000 in one checking account?

#FirstWorldProblems

[BFranklin]

I wish I had $25,000 lol I'm just asking people...relax

I always wondered what people with millions do with their cash. The bank only insures $250,000 right?

[ILUVRP]

with savings accounts drawing less than 1% , i would rather have my money in a checking account , the reason being , a checking account is a demand deposit , meaning no matter how much you had in the account the bank has to release the funds to you if you demand it , like withdraw or write a check to that amount.

where as with a saving account the bank can wait a time to give you the funds if they wanted to , i forget how long they can wait before giving you your savings , i think up to 30 days.

[WilliamC]

Only if it in the process of being spent.

If you have any debt get rid of it, then start saving cash.

When you have so much cash you don't feel safe keeping it at home invest in PM's, preps, guns and ammo.

When you have enough of these to get you buy for a few months should the power go out, then start investing.

[JacobSzumniak]

Better off keeping it in Verizon. Highly liqiudable stable company pays 5% dividend on your money in. Its better than any bank =).

[Zippyjuan]

Is it money you may need at short notice? If not, you can probably get at least some sort of a return by putting some of it into a different investment or account. I doubt you are getting much if any interest payments on that money which is a lot to tie up with zero return (I actually have a checking with interest account but it is some rediculously low rate like 0.01%). Savings accounts aren't paying much better. I have been putting any extra into a dividend paying utility stock (or paying off my mortgage). I keep my checking account balance arround $5,000 to cover most emergencies. That would give you $20,000 to put someplace else. Where to put that of course would be up to you.

[Black Flag]

Where else would you keep it?

As others have said, if it is in a FDIC insured bank, your $25,000 will always exist - either by current real money or manufactured money to monetize your deposit upon failure of that FDIC insured bank.

If you held $25,000 at home, it could be stolen and you are SOL.

Whether in hand or in deposit, you will suffer inflationary effects.

Therefore, consider advice such as Zippy's, but otherwise, ...where else would you put it?

[JacobSzumniak]

You'd put the money into an investment like Verizon is just an example. You'd need a strong steady company that pays out quarterly dividends on your money. No your money isn't insured if you invest it but the returns are far larger ranging from 2-15% interest depending on the company compared to banks rates from 0-.5% lol. If want your money to grown invest smart or you might loose it. Want to keep it safe just put it in a FDIC credit Union but your not going to make much interest off of it.

[WilliamC]

Where else would you keep it?

As others have said, if it is in a FDIC insured bank, your $25,000 will always exist - either by current real money or manufactured money to monetize your deposit upon failure of that FDIC insured bank.

If you held $25,000 at home, it could be stolen and you are SOL.

Whether in hand or in deposit, you will suffer inflationary effects.

Therefore, consider advice such as Zippy's, but otherwise, ...where else would you put it?

Maybe someday I'll have enough money to trust leaving some in a bank, but until then I keep mine with me or where I can put my hands on it without anyone's permission.

Go ahead, trust the banks, I'm sure they have your best interests at heart and would never think of keeping you from your cash.

[RickyJ]

Say what?

Keep it there only long enough to write out a check for gold or silver, buy some real-estate, or some stocks, do not let it sit there for more than a month, way too risky. Honestly, I thought Ron Paul forum members knew better. Oh, and if you don't want the HSD to know about your purchases, don't buy over 5 grand of anything at one time.

[rpwi]

You could...some investors (like Harry Browne) suggest keeping cash on hand as part of a portfolio. It protects you from deflation and should stocks and bonds fall in price in the future...you'll be able to snap them up cheap.

As it is now the FDIC insures the deposits, so you're fine.

[emazur]

I wish I had $25,000 lol I'm just asking people...relax

I always wondered what people with millions do with their cash. The bank only insures $250,000 right?

If they needed to have a lot of cash then they could use multiple banks and put $250k in each one

[Ireland4Liberty]

Most of the banks are interconnected. What happens if they fall in tandum? Will the FDIC cover all the depositis then? Too big to fail I guess, PRINT!

[LukeP]

I would put it in a self directed brokerage account but just keep it as cash. That way it's still liquid but one step away from being able to spend it on a spur.

[rpwi]

Most of the banks are interconnected. What happens if they fall in tandum? Will the FDIC cover all the depositis then? Too big to fail I guess, PRINT!Ironically, it would have been cheaper during the 2008 to let the banks fail and bailout the FDIC then it was to give all the money that we did to the bankers.

[legion]

You could...some investors (like Harry Browne) suggest keeping cash on hand as part of a portfolio. It protects you from deflation and should stocks and bonds fall in price in the future...you'll be able to snap them up cheap.

As it is now the FDIC insures the deposits, so you're fine.

Harry Browne says the safest place to keep your money is in short term treasuries or a money market fund that invests in short term treasuries that does not have repo agreements. He was very clear on this.

"To be suitable for the Permanent Portfolio’s cash portion, a money market fund should be 100% invested in Treasury securities, without using repurchase
agreements or federal agency securities as investments."

-Fail Safe Investing, 2003 Edition

I think its remarkable he mentioned avoiding repurchase agreements that far ahead of the financial crisis.

[Zippyjuan]

Money markets and short term Treasuries offer very low rates of return. One year Treasuries are only yielding 0.18% and according to BankRate, Money Market funds are about one half of a percent so you won't gain much by moving money into them. There are better returning safe investments available such as dividend paying stocks. http://www.bankrate.com/brm/rate/mmmf_home.asp I note that Harry Brown's advice came in 2003 when you could get 1.2% on short term Treasuries (seven times more than today) http://www.infoplease.com/business/money/market-interest-mortage-rates-2006.html Money markets were only slightly better at 0.64%. Browne advocated an allocation of 25% gold, 25% stocks, 25% bonds, and 25% cash.

[LibForestPaul]

Depends on your interpretations of current events, your current economic picture, your immediate needs, and future wants.

If you believe in an Argentinian default, then no, probably not a good idea.
Do you believe the interest rate you receive is equal or greater than the rate your Federal Reserve Notes are losing value, then no, probably not a good idea.
Do you need this account to write checks, purchase a home, then yes.
Do you have a six month supply of cash to cover food, housing, insurance, transportation? If no, then yes, good idea to get this money into a checking account.
Do you have a one month supply of cash as above on hand? No, probably better to put some money in sock draw.

etc.
P.S. Which bank, credit union, or state bank will you be opening up this checking account is also something to consider. Personally, probably best to avoid BOA.

[heavenlyboy34]

my 2 cents-it's relatively safe, but safer in credit union checking accounts than corporate banks like BoA.

[brandon]

I guess if I was saving up for something I was going to buy soon. Otherwise, why not throw it into some kind of mutual fund?

[Danke]

The money you deposit in a bank is no longer yours. Look up the agreement that accompanies the signature card.

[cornell]

You should consider looking into high-yield checking accounts. With minimal requirements, some let you earn 1.5-2.5% on your money. Not much, but better than nothing...

[scrosnoe]

get out of debt first

then just consider doing good and helping others

also to ponder art, coins, bullion collectibles, improving real estate smartly, insurance plans for family, survival 'stuff'

cover the matter with prayer and see where God leads you -- it might be to start a second business / ministry / something completely different...

blessings/sc

[PaulStandsTall]

We all know the story with banks...do you think its smart/safe to keep $25,000 in one checking account?

No.

What on earth could happen that you would need that much in cash? Your car could blow up, house burn down, children get cancer, and you still wouldn't need to have that much in cash. I would say $10K maximum, but it depends on your individual situation as your mortgage/bills could be an outlier. Also, saving your wealth in dollars isn't the best idea, as the government that issues dollars thinks (incorrectly) it is immune to economic laws.

That said, after you have the basic emergency funds taken care of, it's a good idea to protect your wealth with an inflation-proof asset a la silver/gold. Like another said, in a deflationary environment, it's good to have cash to purchase assets. So, if you are rich enough you can do both.

[Carson]

Twice as smart to keep $50,000.00.


”First you get the sugar, then you get the
power, then you get the women”

~Homer Simpson

[Kluge]

Wouldn't it be best to shun the banking system altogether?

[-C-]

Buy a 100$ vacuum sealer from Walmart. They come with bags, well at least enough to seal 25k with. Vacuum seal your money and fucking bury it. Seriously, go to the bank and tell them you want your 25k in cash...and watch them delay you....or grab a shovel and get it as fast as your physical ability will allow.

[Danke]

Buy a 100$ vacuum sealer from Walmart. They come with bags, well at least enough to seal 25k with. Vacuum seal your money and fucking bury it. Seriously, go to the bank and tell them you want your 25k in cash...and watch them delay you....or grab a shovel and get it as fast as your physical ability will allow.

Vacuum seal it and bury it? So you think it will be worth the same or more in the distant future?

[Carson]

Buy a 100$ vacuum sealer from Walmart. They come with bags, well at least enough to seal 25k with. Vacuum seal your money and fucking bury it. Seriously, go to the bank and tell them you want your 25k in cash...and watch them delay you....or grab a shovel and get it as fast as your physical ability will allow.

I've experimented some with stashing things around. First you've got to remember where you buried it. Then nature would have had to of missed it. Critters have a way of gnawing things up and carrying things off. You may want to experiment yourself with something your not to keen on anymore.

Maybe take a photo of the spot.

[kpitcher]

If they needed to have a lot of cash then they could use multiple banks and put $250k in each one
Merril Lynch used to have a system which would automatically dispense funds to multi banks and accounts so you were always insured but was always reachable under a single ML account. I assume there are other financial services that do this.

[rpwi]

Careful guys... The government has what are called "Suspicious Activity Reports" and "Currency Transaction Reports"

So say you want to pull your cash out because you're opposed to fractional banking...the government may see this as a sign that your trying to avoid taxes or make off-radar illicit transactions.

Very big-brotherish...and it could result in an audit.

Anybody know more about these and what the thresholds are for getting flagged?

[ItsTime]

Careful guys... The government has what are called "Suspicious Activity Reports" and "Currency Transaction Reports"

So say you want to pull your cash out because you're opposed to fractional banking...the government may see this as a sign that your trying to avoid taxes or make off-radar illicit transactions.

Very big-brotherish...and it could result in an audit.

Anybody know more about these and what the thresholds are for getting flagged?

I know all to well about these. You will never know if your account has flagged for SAR. NEVER ask them that will be an automatic flag. But it goes beyond the SARs and the like. The Patriot Act has a "know your customer" clause. What is that? That is where the government forces the bank spy on every single one of your transactions. What can get your account flagged? Well in my case it was me paying my bills on time.

I got a letter from my bank saying if I did not contact them within 24 hours that my accounts would be frozen. They wanted to know why I was paying my bills on time on the same date every month. (I send international wires to pay for advertising). Then they wanted to know about tiny transactions of $100 here and there. Basically I had to give away trade secrets in order to not have my accounts frozen and handed over to the government.

Edit: I also believe that Rand Paul said that 100s of thousands of SAR's get reported every year. So my guess is the littlest of things can set them off.

[LibForestPaul]

Careful guys... The government has what are called "Suspicious Activity Reports" and "Currency Transaction Reports"

So say you want to pull your cash out because you're opposed to fractional banking...the government may see this as a sign that your trying to avoid taxes or make off-radar illicit transactions.

Very big-brotherish...and it could result in an audit.

Anybody know more about these and what the thresholds are for getting flagged?

From what I know, $2500, plus having more than $10k on hand requires "license"...

$500 per day w/d * 300 days = boat load of money...no?

[WilliamC]

Hey, I've got an idea.

If you have this much in a checking account and haven't done so then max out your donation to Ron Paul today.

I only donated $25, and that leaves me with about the same amount left in my checking account.

The only other wealth I could tap to donate doesn't really belong to me, but if it did I'd be maxing out today myself.

[Dianne]

What about off shore bank accounts?

[rpwi]

What about off shore bank accounts?Think that is even more apt to trigger a SAR than a cash withdrawal.

[Dianne]

Think that is even more apt to trigger a SAR than a cash withdrawal.

all news media reporting Romney has many millions there ... if it is good enough for the bankster owned Obama and Romney, why can't the real Americans do it?

[heavenlyboy34]

I've experimented some with stashing things around. First you've got to remember where you buried it. Then nature would have had to of missed it. Critters have a way of gnawing things up and carrying things off. You may want to experiment yourself with something your not to keen on anymore.

Maybe take a photo of the spot.
btw, for those taking the "bury it" route, I suggest putting the cash in a cast iron safe of some sort first.

[Kluge]

btw, for those taking the "bury it" route, I suggest putting the cash in a cast iron safe of some sort first.

Seems to me that you'd have a pile of rust within a few years if you buried cast iron.

[WilliamC]

Damn ya'll all this talk of burying money in the back yard sure gets the country boy in me excited!


http://www.youtube.com/watch?v=nP49QY2dNto

[Kluge]

Haven't read much of the thread, but wouldn't it make more sense to take the $25k, convert it into gold, and then bury it if you were to go that route? Paper dollars would continue to lose value and not hold up well if there was a breakdown of whatever vessel you chose to bury them in.

[Zippyjuan]

I am picturing the scene in National Lampoon's Vegas Vacation where Eddie (Randy Quaid) and Chevy Chase are digging all over the yard to try to find coffee cans of money Eddie burried because he didn't trust banks.

[Arklatex]

With 25K, I'd take a loan for 24,000 minus 6K down for 20% payment on farmland next to river



Buy some Gold, Goats(cheap), Chickens($2 each), Canoe, Fruit Trees, Pecans, Greenhouse,

That's what I'd do with 25K. Your primary investment is in excellent land with Riparian Water Rights.

that leaves you with 19k and 5 acres of land

That's a potential road to a made man.

[Dianne]

With 25K, I'd take a loan for 24,000 minus 6K down for 20% payment on farmland next to river



Buy some Gold, Goats(cheap), Chickens($2 each), Canoe, Fruit Trees, Pecans, Greenhouse,

That's what I'd do with 25K. Your primary investment is in excellent land with Riparian Water Rights.

that leaves you with 19k and 5 acres of land

That's a potential road to a made man.

What concerns me is that property rights are under attack in America. People are being foreclosed on by the banksters illegally, in the largest land grab ever; then sold to foreign investors.

I think I would take the money and buy land in Nicaragua instead. This is becoming a popular destination for ex pats, which is driving up the cost of property. But still far cheaper than the U.S. imo .

If Romney or Obama win, here is where I suggest we go ... The Liberty Island

http://www.nicaraguarealty.com/listings/details/1/3/91

[Todd]

The money you deposit in a bank is no longer yours. Look up the agreement that accompanies the signature card.

Do you have a link for one of these online? I can't find anyting on it.

[Simple]

Didn't the FOMC state they intend to depreciate the dollar by 33% by 2020? My numbers might be off, but the fact is if you don't want to lose a big portion of that due to inflation then you're better off spending those dollars on alcohol, guns, ammo, and/or gold that can be resold at a later date.

[Danke]

Do you have a link for one of these online? I can't find anyting on it.

I know it from a court case I witnessed were a guy had money taken from his bank account without a court order. The bank's attorney used the signature card agreement to show that the bank had the right to hand over "his" deposits to a third party.

[Todd]

I know it from a court case I witnessed were a guy had money taken from his bank account without a court order. The bank's attorney used the signature care agreement to show that the bank had the right to hand over "his" deposits to a third party.

Well...I will definately try to find mine and read this. I don't keep anything in any large corporate banks like Chase or BOA....but still need to verify my credit union agreement.

[Schifference]

I would rather stuff it in a mattress than leave it in the bank. Fractional reserve banking is corrupt and allows the bank to loan hundreds of thousands out from your original 25k. Buy silver or gold and hide it or put in a safe.

[slamhead]

Not safe at all. You better just send it to me. I will take care of it.

[Arklatex]

What concerns me is that property rights are under attack in America. People are being foreclosed on by the banksters illegally, in the largest land grab ever; then sold to foreign investors.

I think I would take the money and buy land in Nicaragua instead. This is becoming a popular destination for ex pats, which is driving up the cost of property. But still far cheaper than the U.S. imo .

If Romney or Obama win, here is where I suggest we go ... The Liberty Island

http://www.nicaraguarealty.com/listings/details/1/3/91

Central America - been their 5 times. Not to Nicaragua but I was surprised when I asked a pineapple scientist which country he'd relocate to in Central America if given the chance, I was expecting Costa Rica or Panama but was surprised when he answered Nicaragua.

I'd love to have farmland in the tropics, I could replace those Pecan trees with Mango and Coconut Palms, and have wild banana, plantain and papaya not taking into consideration a plethora of spectacular plants that thrive in the tropics, many wild such as Noni, Almond, and more we've never heard of here in the States.

The problem would be practicality, local rift raft mafia and crime. Much poverty who see opportunity in a foreigner. The United States is still the premier country in the world to live, especially when compared to Central America at this time. Down there say the local sheriff doesn't like you, someone pays him off a little more than you, say someone he's know his whole life and his granddaddy was his granddaddy's barber - well you're screwed. It's pretty much like the wild west. Living in a 3rd world country is very different than the USA. I've spent months down there, love the nature, scared by the social situations. Driving down there is like a bunch of animals, there is no courtesy. An American will often be horrified to see how people drive down there, there is no order, just a bunch of wild maniacs who drive like a bunch of crazed animals. No one will let you in, you have to inch in and force yourself into the flow - it's madness. That's an microcosm of the entire society there. Once that changes, the countries are safe, I'd be there right now.

[helmuth_hubener]

Money markets and short term Treasuries offer very low rates of return. One year Treasuries are only yielding 0.18% and according to BankRate, Money Market funds are about one half of a percent so you won't gain much by moving money into them. There are better returning safe investments available such as dividend paying stocks. http://www.bankrate.com/brm/rate/mmmf_home.asp I note that Harry Brown's advice came in 2003 when you could get 1.2% on short term Treasuries (seven times more than today) http://www.infoplease.com/business/money/market-interest-mortage-rates-2006.html Money markets were only slightly better at 0.64%. Browne advocated an allocation of 25% gold, 25% stocks, 25% bonds, and 25% cash.
Yes, because of course Mr. Browne was recommending short-term Treasuries for their high yield. :rolleyes:

Treasuries are for your cash. Cash is a pretty useful thing to have. It has some pretty valuable characteristics. High yield is not one of them, but other characteristics are. For instance, it can buy stuff. For another instance, it's very stable.

But heaven forbid that anyone ever own anything with a low rate of return, as defined by Zippy!

[Zippyjuan]

Two year old thread bump?

[helmuth_hubener]

Two year old thread bump?
Also heaven forbid anyone might write something in a thread that has exceeded Zippy's maximum attention span!

[oyarde]

We all know the story with banks...do you think its smart/safe to keep $25,000 in one checking account?

Negative .

[NorthCarolinaLiberty]

You should just spend it on women, or PCP, or something like that.