Reply to Is a credit union safer than bank? Safer than vanguard?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No one serious is worried about deposit insurance. Banks are safe.

If you want to worry about something, worry about a recession and inflation.[/quote]

[b]You should be worried about bank run[/b]s and hyperinflation. [/quote]

[b]This. FDIC doesn't cover that. 
[/b]
Once your money is out of your hands and electronically stored, it is no longer in your control and you entire savings could disappear with a virus or cyber attack or simply by the government deciding you don't need it anymore. [/quote]

That is precisely what FDIC covers. Many people on this thread don't understand how banks operate or why FDIC is needed. A bank's model quite literally demands that it take deposits and loan them out (or invest them). By design there isn't enough money in the vault to pay off all depositors if they all come to get their money. THAT is why FDIC (or NCUA) exists. Bank runs are less likely if depositors don't have to worry about being first to get their money before it runs out.

While we're cleaning up misinformation, FDIC is paid for by banks. There are calculations that determine their contribution rates. Investors don't pay for FDIC insurance (except if you want to argue that interest rates are lower to account for the expense).
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