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

[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.