Don’t Worry, Your Bank is Fine

I’ve heard a surprising amount of concern by friends and associates wondering if the most recent government seizure means that the money they have in their respective banks is in trouble. I’m here to tell you that in the vast majority of cases, it isn’t. Most banks may be sucking wind from the credit crisis fallout, but that doesn’t mean they’re going to start keeling over en masse. Don’t believe me? Here are some things to keep in mind:

• The FDIC has you covered: Just about all banks are insured by the Government agency, so don’t fret. If disaster hits and your bank goes under, your deposit insurance amount is $100,000 per depositor per insured bank.
• Your Bank Probably Isn’t in Trouble: The FDIC keeps a list of banks that are running into financial difficulty and while their failure is still unlikely, it wouldn’t be out of the realm of possibility. Banks on the list? 90. Total Banks in the United States? 8,500. I think you can do the math on what your odds are.

I can understand that in the sea of bad news about home sales and the economy, people tend to get inundated with negative thinking. Take a deep breath, relax, and be prepped to ride out this recession.

Popularity: 10% [?]