Merrill Lynch Money Market Account

Your money is safe in the bank?

In the current liquidity crisis since July 2008, some banks have failed.

The banks have gone bankrupt.

mortgage institutions have collapsed because of increasing foreclosures, declining home prices and tighter credit.

Early September saw the rescue of mortgage giants Fannie Mae and Freddie Mac.

Lehman Brothers has declared bankruptcy in mid-September.

Bank of America agreed to buy Merrill Lynch.

The defeat was the largest bank on September 25 while JP Morgan Chase agreed to buy the banking assets of Washington Mutual.

IndyMac Bank failure was another major setback.

How safe your money in the bank?

The continuing failure of the banks has created a panic in the minds of many people about how their money is safe is deposit in banks.

In all cases, banks are safer to keep your money. The Federal Deposit Insurance Corporation provides as much as 8,500 banks in the United States.

So far, only 12 of the 117 problem banks failed compared with the 834 banks that failed during the recession of 1990-1992.

The Federal Deposit Insurance Corporation, or FDIC insures all bank deposits while the National Credit Union Administration or Ncua takes care of credit unions.

These insurance companies have no federal funding. Banks and associations pay periodic premiums of those insurers. If a bank fails, file a claim and you as an applicant to get your money.

It is best to check if your credit union or bank has the required insurance coverage before you deposit your money.

FDIC covers almost all types of bank accounts, including savings accounts, current accounts, savings, money market accounts Christmas Club, and CDs.

Money market shares of mutual funds, securities, brokerage accounts and bonds are not covered by the FDIC.

Amount of insurance

The FDIC Ncua and offer similar amounts of insurance. The total account balance under a single name in a bank is insured up to $ 250,000.

All self-directed retirement funds of the same person in the same bank are insured up to $ 250,000. With joint accounts, it is $ 250,000 for each co-owner. They each have equal rights to withdraw funds.

If you have a joint account and a personal account in the same bank, from your co-owner will be added to the file in your personal account. The two countries would have the assurance of $ 250,000.

With the accounts payable on death benefit, each beneficiary receives insurance coverage $ 250,000. The beneficiary can be an individual, a nonprofit organization or charity. The beneficiary must be properly identified.

Trust accounts are also insured up to $ 250,000 per owner for each named beneficiary.

Unless otherwise indicated, all trust accounts beneficiaries are treated equally.

Banks deposit accounts at high

Normally, investors need not worry about the safety of their money if there is a failure of the bank. You can recover your deposits by deposit insurance from the federal government. If your deposit exceeds the insured limit of $ 100,000 or $ 250,000, you may not be able to secure your deposit amount.

In such cases, it is preferable not to keep large sums of money in one bank account. You could not

want to distribute your money among different branches of the same bank, but instead, divide your money among several banks.

So, you may qualify for insurance coverage of $ 250,000 in each bank.

Alternatively, if you want to keep your money in the SAM.