Ask Terry Questions FDIC Insurance Coverage

FDIC Insurance Coverage

By Terry Savage on November 16, 2023 | Chicken Money

A neighbor is spreading the idea that there will be massive bank failures next year because of the Central Bank Digital Currency system. He alleges that small banks will fail in large numbers and the FDIC will not be able to honor the $250,000 insured amount. He recommends that our homeowner’s association only keep our reserve money in large banks or buy gold. Your thoughts?

Terry Says

Thats baloney. I’m not saying gold won’t go up, but that’s not an appropriate place for a homeowners association to keep reserves. In fact, you could be sued for doing that.

Just stay under the FDIC insurance limits for accounts kept in banks, and if the reserve fund is larger than the $250,000 insurance limit, consider purchasing T-bills in the name of the Association. That is a direct IOU from the federal government.
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