WHY did so many people not know any deposit at a bank over $100,000

[napi21]

isn't guaranteed by the FDIC? Good Lord, I learned that back in school in the 50's! It's posted in every bank and most of the time on the front window glass! i DON'T HAVE ENOUGH MONEY TO EVERY WORRY ABOUT THAT, BUT GEESH...HOW DAMN UNINFORMED IS EVERYBODY?

[kestrel91316]

1. Heck, that's what I was wondering, too. How could they not know?

Were they all paying too much attention to Brangelina's babies and who won on Last Comic Standing???

I have known about the $100k limit since I have been making money (35 years). It always bothered me that if I were to win bazillions in the lottery I would have to divvy it up between every bank in the country to be sure it was all insured, lol.

My guess is a lot of these fools drive gas hogs, too.

[Skittles]

2. some people think GWB is a good president and Obama is a Muslim

next question

[napi21]

6. This has nothing to do with your political aliances. It's paying

attention to what's right in front of you and looking out for your own stuff! I just can't believe there were so many people who didn't know it already!

[Skittles]

10. ever heard of analogy? n/t

[Skittles]

11. dup

[JI7]

3. most people don't know who their Governor or Senators are

[tuckessee]

4. Denial.

Everyone has heard that the FDIC insures up to 100 g's but most Americans never thought it would matter because they could not comprehend the reality of banks collapsing.

They never thought it would actually occur in their country, to them.

[gateley]

5. In the 60's, it was only insured to $10,000. nt

[Lisa0825]

7. That was one of my first thoughts too.

I remember reading about it in "business" class in the 7th grade, and have seen it posted in every bank I have ever been to. You can actually have over $100K protected in one bank if the accounts are set up right, but I am not near that so I never paid attention to that part. But if I DID have that much in one bank, you can damn well be sure I would have made sure it was done right!

[MercutioATC]

8. Some people HERE didn't know that.

At least one was told that wasn't true by their banker.

Everybody needs to have the facts:

http://www.fdic.gov/deposit/deposits/insured/index.html

[Fleshdancer]

9. I just found out on another thread that the insurance is per depositor, not per account

All these years, I thought people opened a second account at the same bank once they reached the $100K limit. Turns out you have to do it at another bank. Many people are being told by their bankers that each account is insured when it's not.

I obviously have never had to deal with this "problem" before, but I thought it was interesting.

[napi21]

12. As a general rule, that's true, However, there are some exceptions.

You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories.

Common Ownership Categories
The most common ownership categories are:

Single Accounts
Certain Retirement Accounts
Joint Accounts
Revocable Trust Accounts
http://www.fdic.gov/deposit/deposits/insuringdeposits/

I think THIS is the info that confuses some people. I'm 64, so I don't ever expect to have a reason to ever worry about this. I'm much more concerned that there will be enough bank failures that the FDIC will not have the $$ to cover their depositors.

[Liberty Belle]

13. Mom thought it's $100,000 per account, not per bank. She lost $$$

because she had more than one account at the bank that just failed, and it totaled a little over $100,000.

[napi21]

15. I blame her bank rep for not explaining that to her! I KNOW mine

would have done so. IF the manager she dealt with is still there, although I doubt it, I would chew him/her out for not doing their job!

[NNN0LHI]

18. The bank rep may have tried to explain it to many without any success?

My elderly mother gets something in her mind a certain way and no bank rep I know is going to change it.

Don

[Liberty Belle]

23. Hard to be sure it's their fault...

My Dad died a couple of months ago. He had Alzheimer's. he was still managing the finances until late last year, but could well have forgotten whatever he was told or not understood it. Mom is also getting forgetful and sometimes can't even remember how to work the VCR. I don't know what the answer is to make sure that people understand the rules; perhaps a separate release form that deals ONLY with these limits, in BIG PRINT so all the old people can read it!

Thankfully Mom only lost about $1,400, and she just got a signficant life insurance settlement from Dad's policy as well as a smaller amount because my grandmother recently died. So we decided not to make an issue of this -- just too many battles to fight right now and Mom wasn't up to any more stress.

But I really feel for people in more desperate means who may have lost very large sums.

[NNN0LHI]

14. I suspect many of these people are elderly and not thinking clearly

[napi21]

16. As I said to the poster above you, that's the job of the bank rep

you work with. IMO it's THEIR responsibility to explain that risk to their customers!

[JI7]

17. based on some posts it seems like the bank reps are lying to people

[begin_within]

19. Many people can't even name what year 9/11 happened or pick out the U.S. on a world map.

[spag68]

20. Must be some rich people here

I don't know anyone that has 100,000 in the bank. Why would anyone have that much money in a bank getting 2% when even govt. bonds pay more? If I had that much cash available, I would buy me a new used motorcycle.

[NYC_SKP]

21. Me neither, don't know anyone with that kind of cash unless it's tied up

in a retirement account.

And I'm not crying for those who lost 50% of the money over 100k....My home lost at least 100K in value due to this mortgage mess, which is my investment.

Any if you had that cash available, heck, you wouldn't have to settle for a new used bike, you could upgrade to a "pre-owned" motorcycle!

:hi:

[pinniped]

22. It would probably take 20 years to get your 100k back.

.