So where do you keep your savings?

NIP247 · Post by **NIP247** » Wed Sep 17, 2008 11:54 pm

I guess it somehow qualifies as risk management... Where do you feel "safe" keeping your cash and assets? (European bank?). Furthermore, is there anything like a gvt bond only sicav? I have the feeling the content of the most "low risk" funds is always spiced up with some funky stuff so the performance post-fees doesn't look totally ridiculous... Finally, what happens to your sicav holdings with a bank when that bank goes belly up?

TonyC · Post by **TonyC** » Thu Sep 18, 2008 2:04 am

i try to keep my immediate liquidity needs in those burgundy[s] that have that kinda caramelized grapefruit rind taste . . .

. . . longer term i try to diversify across barolo and port

nsande · Post by **nsande** » Thu Sep 18, 2008 9:28 am

Actually, Norwegian banks are pretty safe unless you have a lot of money. The government guarantees all deposits up to 2 mill NOK, i.e. about USD 350K. That also means that if you spread your savings and put less than USD 350K in each bank then the money is guaranteed by the government.

Boxfish · Post by **Boxfish** » Thu Sep 18, 2008 9:58 am

In Switzerland there are "cantonal banks", most of them (very few exceptions) have unlimited government guarantees on deposits. Otherwise, I do believe that contrary to what most people think the large Swiss banks do have quite limited coverage by the state.

hector · Post by **hector** » Fri Oct 10, 2008 1:51 pm

nsande: Actually, Norwegian banks are pretty safe unless you have a lot of money. The government guarantees all deposits up to 2 mill NOK, i.e. about USD 350K.

Actually, isn't this just a "clever" marketing ploy by govts to entice people to deposit into their national banks? It is almost too easy to say things like "your savings are guaranteed" but once the s**t hits the fan (like now), many investors may find themselves in a whole different story.

LongTheta · Post by **LongTheta** » Fri Oct 10, 2008 8:49 pm

What about your debt to a bank? Is your debt also guaranteed? or does it get wiped out along with other people's savings?

ig0r · Post by **ig0r** » Sun Nov 23, 2008 6:31 am

Not sure if this applies at all US banks but I believe if you have savings in excess of FDIC limit as well as debt to that bank, you can wipe out debt to the extent of your uninsured savings

kr · Post by kr » Sun Nov 23, 2008 12:18 pm

do people really have consumer debt to their deposit bank?

I'd have thought this was already sold (to a securitisation) so there's really no possibility of netting beyond the FDIC guarantee.

TonyC · Post by **TonyC** » Sun Nov 23, 2008 9:39 pm

> Not sure if this applies at all US banks but I believe if you have

> savings in excess of FDIC limit as well as debt to that bank, you can

> wipe out debt to the extent of your uninsured savings

you would have to have a netting agreement with your bank, something most retail folks don't have . . . I looked into it regarding a low 7 figure account and was rebuffed