Your hard earned money may not be as safe as you think in the bank!

A friend who runs a non-profit organization told me yesterday that the bank they use for their checking and savings account FAILED overnight! The bank is Netbank which is an online bank with over $2 billion in assets! My friend’s non-profit organization had over $450,000 on deposit with the bank! So far, they have only got the FDIC insured amount back and may not get the rest back for quite a long time (if ever!)

The lesson to remember here is that bank accounts (checking, savings, money markets) are only guaranteed for $100,000 in cash. Here is a link to the FDIC’s website for further information http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html .

 If you are also a customer of Netbank and are in the same situation, heed the above advice!