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Is your money safe in a bank?

READ MORE: Is your money safe in a bank?
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Here at WWAY, we have received questions from many of you concerning your finances. The main concern is bank closures, and whether your money is safe in them. In the old days, a person may have believed the safest place to keep their money was under their mattress. Even with all the talk of banks in financial turmoil, officials say your money in banks is safe and sound. It is no secret, in today's economy, banks are feeling the crunch. Credit is less available and loans are harder to come by. According to the Federal Deposit Insurance Corporation, or FDIC, more than 30 banks have closed their doors since 2002. Despite that, Chief Operating Officer for Cooperative Bank, Buddy Burrell, said the FDIC is there to protect you. "All banks are FDIC insured," said Burrell. Burrell mentioned that his bank has seen an increase in calls from customers who are concerned about their accounts and wondering if they need to pull their money out. “Banks are very highly regulated and their deposits, being insured are going to be safer than anywhere else you could put your money. That's just an unnecessary thought that people may have," Burrell said. Under federal law, all bank deposits are insured up to $100,000, but there may be an increase in the future. “There is a lot of talk about raising it to $250,000, which would even more insure people's deposits and make them feel safer," added Burrell. The US Senate did pass the bailout bill to buy $700 billion worth of troubled assets from financial institutions. The bill also included raising the FDIC insurance cap to $250,000, from $100,000. Buddy said if the bailout bill passes the House, it should be a confidence booster for the everyday consumer. If you are still not convinced that your money is insured, you can log on to www.fdic.gov, plug in your account types and check what funds are covered under FDIC.

Disclaimer: Comments posted on this, or any story are opinions of those people posting them, and not the views or opinions of WWAY NewsChannel 3, its management or employees. You can view our comment policy here.

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WHY

does the media CONTINUE to perpetuate this lie about credit. Credit is STILL READILY available to those who QUALIFY for it. I assure you, loans are STILL flying out of the office of banks and lending companies in this area!

It's not a lie

You are looking at a micro-slice of the economy. Back up to get the big picture, and it's truly disturbing. Yes, there is still credit avaialable to consumers with absolutely spotless records....for now. Score over 800 and they'll kiss your hiney just like always. I just got a one year, $25k loan from Chase for 0%. (Convenience check - they make their money because most people don't pay them back in the time requirement and rack up interest charges. I like to disappoint them by using the money for a year, interest free.) Once you get above the spotless consumer level, money is getting hard to find. Banks are not lending to other banks. The CEO of AT&T, the largest telecommunications company in the world, was just in the news yesterday talking about their inability to find 30 or 60 day financing. But industry depends upon the short term paper for everything from bond payments to stock dividends to payroll. Caterpillar just had to pay a full percentage point higher on their latest corporate bonds because the banks simply wouldn't front the cash at their previous lower rate. Caterpillar and AT&T are not exactly deadbeats. This problem may have started from the bottom up, but the credit tightening is starting from the top and will land on all of us with a thud.

Reply to WHY...

It's because the media "darlings" have a functional mis-understanding of what the entire financial market(s) is/are. Remember, bad news sells...even if the "bad" news is manufactured or manipulated. What irritates me is the bias in the mainstream media when it comes to politics and the candidates. NO ONE is asking the hard questions to Nobama...such as his relationship with Tony Resco, etc. No...the mainstream media either ignores what the alternative media outlets are discussing or they downplay it and put it on the back page. Our local television stations do a miserable job of reporting on the state of business here in Southeastern NC, but only slightly better than the Red Star News.