Is Your Money Safe?
If we go into a full blown depression as some economists are forecasting, where will our cash be safe?
I know that each bank account is insured up to $100,000. So should we divide up our cash into lots of different accounts? Would that insurance still be valid if the government starts freezing accounts like they did recently in Argentina?
Should you spread the risk further by keeping cash with lots of different banks in case one particular bank goes under?
We decided to rent for the next 12 months as we didn't get the house we wanted. Now we have our cash in a savings account with interest currently at 3.89% and dropping (it was at over 5%).
What should we do with our cash and where will it be safe?
The stock market is dropping like a stone, we're out of the real estate market for at least another year - do we just leave it in the bank? Divide it up into seperate $100,000 accounts? Take it out and stick it in the mattrass : ) ? What?
I realize this all sounds a bit extreme, but with the recent economic climate paired with what we've seen in Argentina and even runs on banks in the UK, one starts to wonder where your money is safe - especially if things get significantly worse.