Is Your Money Really Safe?

Analysts are predicting that as many as 300 banks could collapse before the investment crisis is all over. So, is your money safe in the bank?

We took that concern to banking expert Steve Reider. He works for a company called Bancography. They track the ups and downs of the business. Reider points out that this is an investment bank crisis not a community bank meltdown.

Reider also says its not time to pull your money out of your account. The Federal Deposit Insurance Corporation or the FDIC was created to protect money if your bank fails. In other words, it's insurance for your money! "No consumer has ever lost so much as a penny in insured savings since the FDIC has been established."

In the recent Bailout package approved my Congress, the FDIC insurance coverage on your money has jumped from 100,000 dollars to 250,000 through the end of next year. "Their deposits up to 250,000 dollars in each institution are backed by the full faith and credit of the United States government." In 2010, the insured amount will go back down to 100,000.

Click HERE to make sure your bank is a member of the FDIC. You can also call the FDIC at 1-877-275-3342.

For information about credit unions, click HERE.

For independent ratings of banks and credit unions, visit bankrate.com. OR bauerfinancial.com.

Click HERE to see a graph of troubled banks between 1990 and today. (Courtesy: Bancography)