Clark hammers home his $90,000 FDIC limit advice on clarkhoward.com

The banking world continues to be in turmoil, making this a better time than ever to heed Clark's advice about not having uninsured money on deposit.

New data out today shows that IndyMac had $541 million of uninsured money on deposit at the time of failure. That's $541 million that went up in smoke -- and there's no way to get it back.

An organization called Highline Financial has ranked the strength of the 10 largest financial institutions on a scale from 0-99, from the worst to the best. Citigroup gets a 1; Wachovia gets a 6; and Bank of America gets a 17. These are ugly numbers. On the flip side, U.S. Bancorp and the Bank of New York Mellon score 81 and 71, respectively.

FDIC insurance is available on deposits up to $100,000 ($250,000 for retirement funds). But Clark advises people to only put money in up to $90,000. That way you don't forfeit a penny of interest in the event of a bank failure.

Beware if you think a revocable trust will expand your coverage beyond $100,000. As many IndyMac customers found out, a revocable trust that's been filed incorrectly will be void -- leaving you completely exposed.

So here's the bottom-line: Don't put more than $90,000 in a single bank. Split it up yourself among several banks or use the CDARS program -- especially if you're a non-profit or a business.

UPDATE: See the complete Highline Financial tally here. Be sure to scroll to the bottom of the page.

What others are saying

If you'd like to know somethnig more aobut FDIC and bank ratings have a look at www.bank-ratings.net
By Dominga @ 05/21/09 10:14:58 AMreport abuse
so what clark is really saying, is that permanent, overfunded life insurance is the way to go after all!
By anonymous @ 09/25/08 08:07:50 AMreport abuse
FDIC insurance
The FDIC website has a great tool to determine your coverage, as another poster mentioned. And if you have a question, you can call them and talk to a real person who will answer your questions. I was very impressed with the conversation I had with one of their people, who consulted the regs and looked up my particular situation. Also, consider using your local credit union. They have NCUA protection up to 100K, similar to FDIC.
By Ok in Oregon @ 09/24/08 01:27:22 PMreport abuse
If a bank fails, will they call their notes? I seem to remember something about this in studying history. Example: If a person has a mortgage with Citibank, and Citibank fails....Then what?
By vh @ 09/23/08 08:21:17 PMreport abuse
Bank ratings
I went to the suggested site about bank ratings, put in my email address and watched the hour long clip about banks and leaders and their ratings. They said ONLY the people who watched the clip would get all the info emailed to them following the clip. They recommended thestreet.com site too. I never got the email....I checked junk and anti-virus lists as well.They scared me to death about my bank(and LITTLE money market account there)going under.Do you think we should rip our funds out of the lower ratings(my bank is rated C-) and put it into one B- and higher as they suggested? Also Merrill Lynch has our retirement and Bank of America just bought them. B of A is rated B- to...but should we have everything(which is pitifully small)in the same company?
By Teliea Harwell @ 09/23/08 12:29:35 PMreport abuse
bank ratings/worries
http://bankimplode.com/
http://www.weissratings.com (Now owned by theStreet.com, but have been historically very accurate, impartial.)

Bankrate.com is horrifically wrong with its rankings - there's questionable bias involved. They've missed bank failures - many.
By tara @ 09/22/08 08:20:48 PMreport abuse
Trusts
Trust questions may be answered at the UPDATE link above. Good article
By Don P. @ 09/22/08 06:55:59 PMreport abuse
Bank ratings
Is this info helpful in rating your bank?

http://www.bankrate.com/brm/safesound/ss_home.asp

http://www.bankrate.com/brm/safesound/select.asp?insttype=0
By Irene @ 09/22/08 06:47:23 PMreport abuse
Bank Accounts
No comment except I agree with Clark, but ooooooh, it must be nice to have even $90,000 to put anywhere :))
By Dough-nut @ 09/22/08 06:18:46 PMreport abuse
Support Local Banks
If you've got funds in one of the 100 listed banks, you're just supporting the greed which is profiting from the collapse of the economy. Pull your money out and deposit it in a SOLID (i.e. do your homework, ask around) LOCAL financial institution!
By RHodin @ 09/22/08 03:20:41 PMreport abuse
revocable trust
So who will answer the question: How do you know if your revocable trust is filed correctly?
By Janine @ 09/22/08 01:25:01 PMreport abuse
B of A Deposits
I have $380,000. In four accounts at B of A, all under different joint account names Succ as: A+B, A+C,A+D AND C+D Do you think that I should move them to a stronger rated bank.
By Dave Cal @ 09/22/08 01:20:57 PMreport abuse
Website via FDIC, tells you if you are insured
www2.fdic.gov/edie - Not sure if Clark would agree with this, But FYI, go to FDIC site, and use edie, can enter each account you have, exactly as the names appear, the amount in the account, and
site tells you if you have any funds which are NOT insured. I have more than $200K in one bank and using this I could verify the manner in which they were setup was CORRECT to allow more insurance than $100K or $200K limits.
FDIC information is very confusing and trusting the banks answers was also scary. I hope this site is for real or I could join others in huge loss if something were to happen.
By Lacy Mitchell @ 09/22/08 12:54:14 PMreport abuse
revocable trust
How do you know if your revocable trust is filed correctly or not. I was told that I am protected up to $700,000 because of having 7 beneficiaries.
By Marcia @ 09/22/08 12:18:40 PMreport abuse
Low number = BAD
Remember, this is not a ranking. It is scoring. So WaMu at 7 is very bad. 0 is worst, 100 is best.
By Greg @ 09/22/08 12:08:38 PMreport abuse
no more than 90K in a bank, and choose better banks
Some smaller regional banks are doing quite well just now, thank you! I do all my banking at Central Bank & Trust Co of Ky. It's hard not to panic when I see the national news, but then I just have to remind myself that Luther Deaton is taking care of my money, so all is well... http://www.kentucky.com/103/story/532162.html
By Vicki @ 09/22/08 12:07:20 PMreport abuse
FDIC LIMIT
Are CDs safe?
By PATRICIA WALKER @ 09/22/08 12:06:29 PMreport abuse
WaMu at 7?!!?
Just looking at the linked article and the report, it is amazing that WaMu, who lost 25 plus percent today in trading is ranked number 7. I wonder how indicitive that report really is of the bank's overall health?
By Dave Hall @ 09/15/08 09:51:31 PMreport abuse
roth
I just started listing to you show the other day I believe on 9-11 a specific roth was mentioned and I believe it was fidelity something some thing. Can you please tell me what it was some guy was saying how he taught his daughter about long term investment
Thanks
By Thomas S @ 09/15/08 09:20:01 PMreport abuse
Why $90K?
$90K is a one size fits all approach. Why so overly cautious? It just doesn't make sense for, say, a six month account that delivers, at the absolute maximum these days $3K at 6% APY interest (good luck finding that!). I go with $99,500, get interest checks sent to me every month. I forfeit the APY, but it doesn't matter in a rising interest rate environment (I put the interest in another CD).

Clark, lighten up.
By Paul @ 09/12/08 04:09:28 AMreport abuse
Highland Financial
I went to the Highline Financial website but could not find the list you talked about on your show today. Please let me know we get the whole list!! Thank you
By Patsy Taylort @ 09/11/08 09:51:32 PMreport abuse
Financial institutions
Can you send me the list of Financial institutions on a scale from 0-99 or tell me where it is on your web site
Thank You
By Harold Raymer @ 09/11/08 09:50:32 PMreport abuse
Bank Rating Web Site
http://www.bankrate.com/brm/safesound/ss_home.asp

http://www.bauerfinancial.com/btc_ratings.asp
By Sam @ 09/11/08 08:51:55 PMreport abuse
Highline Financial Bank List
I went to the Highline Financial website but could not find the list you talked about on your show today. Please, please let us know how we can get the whole list!! I'm doing research right now for my mother who needs to place her retirement money in a safe but high-interest-bearing CD.
By TLS @ 09/11/08 05:06:20 PMreport abuse
Bank failures
Hi, Clark read a partial list of banks with low ratings (i.e. Citibank with a rating of 1). Is there a complete list available? Where? Thanks, MGB
By Marvin Back @ 09/11/08 04:36:08 PMreport abuse

If you'd like to know somethnig more aobut FDIC and bank ratings have a look at www.bank-ratings.net

By Dominga @ 05/21/09 10:14:58 AMreport abuse

so what clark is really saying, is that permanent, overfunded life insurance is the way to go after all!

By anonymous @ 09/25/08 08:07:50 AMreport abuse

FDIC insurance

The FDIC website has a great tool to determine your coverage, as another poster mentioned. And if you have a question, you can call them and talk to a real person who will answer your questions. I was very impressed with the conversation I had with one of their people, who consulted the regs and looked up my particular situation. Also, consider using your local credit union. They have NCUA protection up to 100K, similar to FDIC.

By Ok in Oregon @ 09/24/08 01:27:22 PMreport abuse

If a bank fails, will they call their notes? I seem to remember something about this in studying history. Example: If a person has a mortgage with Citibank, and Citibank fails....Then what?

By vh @ 09/23/08 08:21:17 PMreport abuse

Bank ratings

I went to the suggested site about bank ratings, put in my email address and watched the hour long clip about banks and leaders and their ratings. They said ONLY the people who watched the clip would get all the info emailed to them following the clip. They recommended thestreet.com site too. I never got the email....I checked junk and anti-virus lists as well.They scared me to death about my bank(and LITTLE money market account there)going under.Do you think we should rip our funds out of the lower ratings(my bank is rated C-) and put it into one B- and higher as they suggested? Also Merrill Lynch has our retirement and Bank of America just bought them. B of A is rated B- to...but should we have everything(which is pitifully small)in the same company?

By Teliea Harwell @ 09/23/08 12:29:35 PMreport abuse

bank ratings/worries

http://bankimplode.com/
http://www.weissratings.com (Now owned by theStreet.com, but have been historically very accurate, impartial.)

Bankrate.com is horrifically wrong with its rankings - there's questionable bias involved. They've missed bank failures - many.

By tara @ 09/22/08 08:20:48 PMreport abuse

Trusts

Trust questions may be answered at the UPDATE link above. Good article

By Don P. @ 09/22/08 06:55:59 PMreport abuse

Is this info helpful in rating your bank?

http://www.bankrate.com/brm/safesound/ss_home.asp

http://www.bankrate.com/brm/safesound/select.asp?insttype=0

By Irene @ 09/22/08 06:47:23 PMreport abuse

Bank Accounts

No comment except I agree with Clark, but ooooooh, it must be nice to have even $90,000 to put anywhere :))

By Dough-nut @ 09/22/08 06:18:46 PMreport abuse

Support Local Banks

If you've got funds in one of the 100 listed banks, you're just supporting the greed which is profiting from the collapse of the economy. Pull your money out and deposit it in a SOLID (i.e. do your homework, ask around) LOCAL financial institution!

By RHodin @ 09/22/08 03:20:41 PMreport abuse

revocable trust

So who will answer the question: How do you know if your revocable trust is filed correctly?

By Janine @ 09/22/08 01:25:01 PMreport abuse

B of A Deposits

I have $380,000. In four accounts at B of A, all under different joint account names Succ as: A+B, A+C,A+D AND C+D Do you think that I should move them to a stronger rated bank.

By Dave Cal @ 09/22/08 01:20:57 PMreport abuse

Website via FDIC, tells you if you are insured

www2.fdic.gov/edie - Not sure if Clark would agree with this, But FYI, go to FDIC site, and use edie, can enter each account you have, exactly as the names appear, the amount in the account, and
site tells you if you have any funds which are NOT insured. I have more than $200K in one bank and using this I could verify the manner in which they were setup was CORRECT to allow more insurance than $100K or $200K limits.
FDIC information is very confusing and trusting the banks answers was also scary. I hope this site is for real or I could join others in huge loss if something were to happen.

By Lacy Mitchell @ 09/22/08 12:54:14 PMreport abuse

How do you know if your revocable trust is filed correctly or not. I was told that I am protected up to $700,000 because of having 7 beneficiaries.

By Marcia @ 09/22/08 12:18:40 PMreport abuse

Low number = BAD

Remember, this is not a ranking. It is scoring. So WaMu at 7 is very bad. 0 is worst, 100 is best.

By Greg @ 09/22/08 12:08:38 PMreport abuse

no more than 90K in a bank, and choose better banks

Some smaller regional banks are doing quite well just now, thank you! I do all my banking at Central Bank & Trust Co of Ky. It's hard not to panic when I see the national news, but then I just have to remind myself that Luther Deaton is taking care of my money, so all is well... http://www.kentucky.com/103/story/532162.html

By Vicki @ 09/22/08 12:07:20 PMreport abuse

FDIC LIMIT

Are CDs safe?

By PATRICIA WALKER @ 09/22/08 12:06:29 PMreport abuse

WaMu at 7?!!?

Just looking at the linked article and the report, it is amazing that WaMu, who lost 25 plus percent today in trading is ranked number 7. I wonder how indicitive that report really is of the bank's overall health?

By Dave Hall @ 09/15/08 09:51:31 PMreport abuse

roth

I just started listing to you show the other day I believe on 9-11 a specific roth was mentioned and I believe it was fidelity something some thing. Can you please tell me what it was some guy was saying how he taught his daughter about long term investment
Thanks

By Thomas S @ 09/15/08 09:20:01 PMreport abuse

Why $90K?

$90K is a one size fits all approach. Why so overly cautious? It just doesn't make sense for, say, a six month account that delivers, at the absolute maximum these days $3K at 6% APY interest (good luck finding that!). I go with $99,500, get interest checks sent to me every month. I forfeit the APY, but it doesn't matter in a rising interest rate environment (I put the interest in another CD).

Clark, lighten up.

By Paul @ 09/12/08 04:09:28 AMreport abuse

Highland Financial

I went to the Highline Financial website but could not find the list you talked about on your show today. Please let me know we get the whole list!! Thank you

By Patsy Taylort @ 09/11/08 09:51:32 PMreport abuse

Financial institutions

Can you send me the list of Financial institutions on a scale from 0-99 or tell me where it is on your web site
Thank You

By Harold Raymer @ 09/11/08 09:50:32 PMreport abuse

Bank Rating Web Site

http://www.bankrate.com/brm/safesound/ss_home.asp

http://www.bauerfinancial.com/btc_ratings.asp

By Sam @ 09/11/08 08:51:55 PMreport abuse

Highline Financial Bank List

I went to the Highline Financial website but could not find the list you talked about on your show today. Please, please let us know how we can get the whole list!! I'm doing research right now for my mother who needs to place her retirement money in a safe but high-interest-bearing CD.

By TLS @ 09/11/08 05:06:20 PMreport abuse

Bank failures

Hi, Clark read a partial list of banks with low ratings (i.e. Citibank with a rating of 1). Is there a complete list available? Where? Thanks, MGB

By Marvin Back @ 09/11/08 04:36:08 PMreport abuse

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Sep 11, 2008 -- Clark hammers home his $90,000 FDIC limit advice

What others are saying