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-> Household Management
-> Finances
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amother
Floralwhite
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 Sun, Mar 12 2023, 1:45 pm
| amother OP wrote: | Thanks for understanding. I’m shocked how many women here don’t get what’s going on.
I’m the only one on that account so that’s just 250k |
Why be shocked? I work in healthcare, not business, my husband takes care of our money, and I’m not fortunate enough to have $250K in the bank.
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amother
NeonOrange
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Sun, Mar 12 2023, 1:47 pm
| amother Floralwhite wrote: | | Why be shocked? I work in healthcare, not business, my husband takes care of our money, and I’m not fortunate enough to have $250K in the bank. |
This. Many of us have a pitiful amount in the bank and there isn't much to do practically anyway.
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crust
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Sun, Mar 12 2023, 2:04 pm
| amother Heather wrote: | Basically what most people don’t understand is banks don’t keep your money in a safe deposit box. They lend it out for a specific interest rate and they give you a hopefully lower rate for the loan. For the past few years they paid nearly zero to their depositors and charged a higher interest rate to the people they lent the money to.
When interest rates went up due to inflation - they now started having to pay their depositors higher rates but still have loans out to people at lower rates.
SVB is a bank that didn’t secure their risk properly (they lent to many tech start ups) so last week people (depositors) started pulling out their money which caused the bank to sell their loans at a loss to cover the deposits being pulled out. Panic ensued and there was a run on the bank and the FDIC took it over on friday. Most of the money deposited at SVB was in accounts that had a much higher balance than $250,000 and only $250,000 is insured. Most people don’t understand that only $250K is insured per person per bank.
Chase, Bank of America, Citibank, USB and Wells Fargo are considered too large to fail and the govt would step in to save them BUT they are also much safer as they have a tremendous amount of their deposits in checking accounts which don’t pay too much interest so don’t suffer as much if interest rates suddenly spike. |
The only thing that can happen is that people will panic and start pulling their money in cash and then bigger banks collapse because if enough people pull 20-50-100k in cash that has a ripple effect.
I'm not talking about payroll or regular business transactions or consumer purchases.
The problem is with huge cash withdrawals.
I am curious to know if the government can create a lockdown on cash transactions.
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amother
Canary
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Sun, Mar 12 2023, 2:14 pm
You mean to buy low? With what money? By selling stocks at a loss? Also if the market tanks, many companies will go under.
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amother
Valerian
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Sun, Mar 12 2023, 2:17 pm
| amother Canary wrote: | | You mean to buy low? With what money? By selling stocks at a loss? Also if the market tanks, many companies will go under. |
If you have extra money to invest. I’d say to buy index funds
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amother
Latte
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Sun, Mar 12 2023, 2:17 pm
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How will all this affect mortgage loans? I have several homes with mortgages
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amother
Hyacinth
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Sun, Mar 12 2023, 2:18 pm
| amother Latte wrote: | | How will all this affect mortgage loans? I have several homes with mortgages |
If you already have the mortgage, that means the rate is locked in so it shouldn't affect you at all
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amother
Latte
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Sun, Mar 12 2023, 2:20 pm
| amother Hyacinth wrote: | | If you already have the mortgage, that means the rate is locked in so it shouldn't affect you at all |
Gosh I dont know if anything is guaranteed anymore
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notshanarishona
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Sun, Mar 12 2023, 2:22 pm
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Anyone who needs a bank to transfer money too , my bank is available 🙂. I have 3 accounts and can easily fit at least $249,000 in each one . I would be thrilled to get an interest free loan and help someone else in the process.
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amother
Sage
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Sun, Mar 12 2023, 2:26 pm
| amother Hyacinth wrote: | | If you already have the mortgage, that means the rate is locked in so it shouldn't affect you at all |
Only if it's not an ARM.
But this has nothing to do with banks failing.
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crust
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Sun, Mar 12 2023, 2:27 pm
| notshanarishona wrote: | | Anyone who needs a bank to transfer money too , my bank is available 🙂. I have 3 accounts and can easily fit at least $249,000 in each one . I would be thrilled to get an interest free loan and help someone else in the process. |
Ha! Your post reminds me of the the joke-
Hi is this Kohn that bakes the cakes?
No. It's Kohn that eats the cakes.
You're saying I'm not the one that will transfer the money I'm the one that will take your transfers.
Problem is you can't do any transfers today and that's the madness.
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notshanarishona
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Sun, Mar 12 2023, 2:47 pm
| crust wrote: | Ha! Your post reminds me of the the joke-
Hi is this Kohn that bakes the cakes?
No. It's Kohn that eats the cakes.
You're saying I'm not the one that will transfer the money I'm the one that will take your transfers.
Problem is you can't do any transfers today and that's the madness. |
Why can’t people zelle money or write a check? The bank doesn’t have to be open to transfer money, but yes I was joking, I don’t really expect anyone to send over a couple hundred grand to a complete stranger.
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crust
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Sun, Mar 12 2023, 2:49 pm
| notshanarishona wrote: | | Why can’t people zelle money or write a check? The bank doesn’t have to be open to transfer money, but yes I was joking, I don’t really expect anyone to send over a couple hundred grand to a complete stranger. |
Because most people can't Zelle more than 5k a day.
They would need to do a wire which needs to wait for the bank. Which isn't open. Which might chas vesholom collapse tomorrow.
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amother
Leaf
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Sun, Mar 12 2023, 2:51 pm
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Unless you own a business why would you have that much cash in one account. It doesn’t affect most of us.
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amother
Leaf
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Sun, Mar 12 2023, 2:53 pm
| crust wrote: | Because most people can't Zelle more than 5k a day.
They would need to do a wire which needs to wait for the bank. Which isn't open. Which might chas vesholom collapse tomorrow. | It will collapse if people do a bank run like they did to silicon AH
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Goldie613
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Sun, Mar 12 2023, 2:55 pm
| amother OP wrote: | We can’t do that today as banks are closed.
It is what it is now. We can’t help that part. |
No clue if you are dealing with an account that you can Zelle/write checks out of, but can you move some money over to a friend/family member that way, and ask them just to hold it for a few days until you set up another account?
Another option - some banks have accounts with online banking where you can set up accounts online as well (I believe Capital One is one of these). That should (hopefully) be doable even over the weekend.
Hatzlacha 
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amother
Indigo
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Sun, Mar 12 2023, 3:48 pm
| amother Leaf wrote: | | Unless you own a business why would you have that much cash in one account. It doesn’t affect most of us. |
I’m sure there are many business owners on here. Myself included.
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amother
Starflower
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Sun, Mar 12 2023, 3:53 pm
How reliable are these ratings in predicting a bank's collapse?
bauerfinancial.com/star-ratings
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amother
NeonOrange
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Sun, Mar 12 2023, 4:01 pm
| amother Hyacinth wrote: | | If you already have the mortgage, that means the rate is locked in so it shouldn't affect you at all |
It will affect her in some way anyway. Unless these are all properties that are just sitting around not being used at all and she can afford that.
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amother
Maple
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Sun, Mar 12 2023, 4:35 pm
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