The monumental failure of Silicon Valley Bank and Signature Bank earlier this month have raised concerns of system-wide contagion that could spread to other regional and local banks, and though experts say Americans’ money in those banks is safe, they also suggest people should diversify their assets and cash to help mitigate the risk.... [+]Key Facts
Americans with less than $250,000 in the bank are guaranteed their money is safe by the Federal Deposit Insurance Corporation , which alsoFor customers with more than $250,000 in a bank, Haydar Haba, managing partner of venture capital firm Andra Capital, advises diversifying money into two or three other banks or to put some of that money in federal bonds, which earn interest.
Matthew Goldberg, an analyst at Bankrate, called the collapse of SVB and Signature Bank a “wake-up call” for Americans to make sure their money is at an, saying: “Even during times when there are no bank failures or few bank failures, you always have to make sure your money is safe and within FDIC limits and rules.”
Preferably, Haba said to choose a bank with a “Prime-1” rating from Moody’s Analytics, which considers a bank to be Prime-1 if it “reflects a superior ability to repay short-term obligations.”“There is a feeling of a contagion going on, and the only thing the Fed can do in that case is what they did with SVB and Signature Bank, which is making customers whole,” Haba said. “The key is diversification. You can’t put all your eggs in one basket. It doesn’t make sense.
If it’s such a speculative topic why don’t people just avoid banks all together and think of other ways to storagemoneyandearninteresthaveyouheardofcryptocurrency
“experts” 🙄