No. of Recommendations: 5
Ms. Wolf and I keep our 3-5 year of emergency funds in banks EXACTLY because of the FDIC. We’re actually thinking of withdrawing the bulk of the funds because of the morons currently in charge.
Is that necessary? While the FDIC's staffing cuts definitely increase the possibility of any given bank possibly failing, the $250K of government-backed insurance is far less dependable on the amount or quality of staffing. Whatever your 3-5 year emergency fund amount is, you should be able to place it in a manageable enough number of separate FDIC-insured banks, keeping your deposits below the insurable limit and diversifying a bit against the irritation of a possible bank failure.
