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

  1. #1

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

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



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  3. #2

  4. #3

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    Its insured.
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  5. #4

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    Not any more. The internet knows you have it!

  6. #5

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    Yes it's very smart. Let me give you my acct number so you can make the deposit.
    "It's probably the biggest hoax since Big Foot!" - Mitt Romney 1-16-2012 SC Debate

  7. #6

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    Quote Originally Posted by BFranklin View Post
    We all know the story with banks...do you think its smart/safe to keep $25,000 in one checking account?
    #FirstWorldProblems
    Let's move forward to the Constitution.. I am the new GOP. I stand with Rand.

  8. #7

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    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?

  9. #8

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    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.

  10. #9

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    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.
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  11. #10

    Default Better off

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

  12. #11
    Member Zippyjuan's Avatar
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    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.
    Last edited by Zippyjuan; 04-13-2012 at 12:36 PM.
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  13. #12

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    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?

  14. #13

    Default Like I said

    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.

  15. #14

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    Quote Originally Posted by Black Flag View Post
    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.
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  16. #15

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    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.

  17. #16

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    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.

  18. #17

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    Quote Originally Posted by BFranklin View Post
    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

  19. #18

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    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!

  20. #19

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    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.

  21. #20

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    Quote Originally Posted by Ireland4Liberty View Post
    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.

  22. #21

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    Quote Originally Posted by rpwi View Post
    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.

  23. #22
    Member Zippyjuan's Avatar
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    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/m...ates-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.
    Last edited by Zippyjuan; 04-13-2012 at 08:06 PM.
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  24. #23

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    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.
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  25. #24

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    my 2 cents-it's relatively safe, but safer in credit union checking accounts than corporate banks like BoA.
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  26. #25

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    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?
    Original supporter of Ron Paul since 2007 and I stand with Rand.

  27. #26

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    The money you deposit in a bank is no longer yours. Look up the agreement that accompanies the signature card.
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  28. #27

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    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...

  29. #28
    Member scrosnoe's Avatar
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    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

  30. #29

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    Quote Originally Posted by BFranklin View Post
    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.
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  31. #30

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

    Twice as smart to keep $50,000.00.


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    Last edited by Carson; 04-13-2012 at 11:34 PM.

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