Category Archives: Bank Accounts

Is Your Bank on the “100 Safest” List? Maybe You Should Find Out

Bank Vault

Close to Collapse: Bailed-Out Banks Facing Bankruptcy

By Elliott Wave International

We want to trust in the financial stability of our bank. After all, most of us have money in these institutions.

In spite of our wishful thinking, the tide of bank failures has not stopped. And these failures are occurring well after the heart of the financial crisis — and even after some of these banks received bailouts.

“Nearly 100 U.S. banks that got bailout funds from the federal government show signs they are in jeopardy of failing.

The total, based on an analysis of third-quarter financial results by The Wall Street Journal, is up from 86 in the second quarter, reflecting eroding capital levels, a pileup of bad loans and warnings from regulators.

The 98 banks in shaky condition got more than $4.2 billion in infusions from the Treasury Department under the Troubled Asset Relief Program.”

Wall Street Journal (12/26)

Seven of the 98 small banks mentioned have already failed.

In the U.S. so far this year, 157 banks have failed — that’s the highest number since 1992.

More failures are likely because many banks are burdened by questionable “assets” and bad real estate loans.

“…your money is only as safe as the bank’s loans. In boom times, banks become imprudent and lend to almost anyone. In busts, they can’t get much of that money back due to widespread defaults.

If the bank’s portfolio collapses in value, say, like those of the Savings & Loan institutions in the U.S. in the late 1980s and early 1990s, the bank is broke, and its depositors’ savings are gone.”

Conquer the Crash, 2nd edition, pp. 175-176

Yes, the Federal Deposit Insurance Corporation (FDIC) insures depositors, but the question is: Does the FDIC have the wherewithal to “make whole” all depositors if scores of banks go under at the same time? Here at Elliott Wave International, we do not recommend that you count on the FDIC. Here’s why:

“…did you know that most of the FDIC’s money comes from other banks? This funding scheme makes prudent banks pay to save the imprudent ones, imparting weak banks’ frailty to the strong ones.

When the FDIC rescues weak banks by charging healthier ones high ‘premiums,’ overall bank deposits are depleted, causing the net loan-to-deposit ratio to rise.

The result, in turn, means that in times of bank stress, it will take a progressively smaller percentage of depositors to cause unmanageable bank runs.”

Conquer the Crash, 2nd edition, p. 177

Are some banks safer than others? We think so.

“Hope is not a strategy.” If you plan to have money on deposit at a bank, we suggest reading our FREE report, Discover the Top 100 Safest U.S. Banks.” This 10-page bank safety report is available to you after you become a Club EWI member.Inside the revealing free report, you’ll discover:

  • The 100 Safest U.S. Banks (2 for each state)
  • Where your money goes after you make a deposit
  • How your fractional-reserve bank works
  • What risks you might be taking by relying on the FDIC’s guarantee

Please protect your money. Download the free 10-page “Safe Banks” report now.
Learn more about the “Safe Banks” report, and download it for free here.

This article was syndicated by Elliott Wave International and was originally published under the headline Is Your Bank on the “100 Safest” List? Maybe You Should Find Out. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Strongest US Banks and Thrifts

Greetings! In my previous post I told you how you can find out which are the weakest banks and thrifts in the U.S. Now it’s time to share the link where you can find out which ones are the STRONGEST. If you happen to be with a bank listed on the weakest list, jumping on board with a bank listed on the strongest list seems to me like a smart move. Once again this list is produced by Weiss Ratings, and I thank them kindly for taking the time to research this information. Here is the link to the strongest banks and thrifts in The United States of America:

http://www.weissratings.com/strongest-banks-and-thrifts-in-us.php

I hope you find this useful.

Cheers,

Alan

Weakest US Banks and Thrifts

Hi everyone. I’ve got some  useful bit of info to share with you. In a recent post on my “finance blog” I’ve got two links to the weakest and strongest US banks list product by Weiss Ratings and I though that this info would be very useful to share with you folks here on this blog.

If your bank happens to be on that list you may wish to consider finding yourself a financially stronger bank.

Here is the link to the weakest US banks and thrifts list:

http://www.weissratings.com/weakest-banks-and-thrifts-in-us.php

Kudos to Weiss Ratings for doing the research!

Oh, before I finish this post I want to let you know that in my next one I will post the link to the strongest US banks and thrifts. You can find it on the Weiss Ratings page too but I’ll post it here for convenience sake.

Cheers,

Alan

Testing President’s Choice Financial No Fee Bank Account

Hello everyone. Today I went down to my local Superstore and opened a no fee bank account with President’s Choice Financial. First off I must state that this bank account is available to Canadians only. If you’re a regular reader of my blog you may recall that a while back I posted a review of President’s Choice Financial No Fee Bank Account. However, even though that review provided you with valuable information I unfortunately could not provide “first hand experience” information. That is about to change though. I now have an account and will let you all know how everything work out.

First Impressions:

The first thing you may be wondering is if it was difficult to open an account. I found the process very easy. What I had to do was show up to one of their banking booths – which can be found at all Superstore supermarket chain locations – and speak with one of their customer service representatives. I was scurried over to a little private area where the customer service rep logged on to some terminal, filled a few account forms, asked me the typical range of questions you can expect when opening a bank account, and then roughly 45 min later I was all set.

What you’re going to need to open an account:

Normally most banks will ask you for two pieces of ID – typically drivers license and social insurance number. PC Financial is no different so they too asked for my drivers license and SIN card. Unfortunately I screwed up and forgot to bring my SIN card. Thankfully though the lady that created my account said they will also accept an existing credit card with my name on it, so I quickly pulled out my VISA card which I have with a competitor bank and I was all set.I would still strongly recommend that you come prepared and bring two valid pieces of ID (passport, permanent resident card, drivers license and SIN card)

What I like so far:

– No fees! The lady that created my account seemed really eager to drive this selling point home. I’d have to agree with her that it’s definitely a good thing not to have to pay for any banking transactions.

– Their online banking interface is simple and straightforward.

–  I can use my PC Financial debit card at any CIBC (big Canadian bank with lots of branches) bank machine without paying any fees.

– I get something called “PC Points” which later on I can use towards groceries at any Superstore location.

What I do not like:

– No US Dollar checking account offering. It would’ve been really awesome if they offered a US Dollar denominated account. For now I guess I’ll have to stick with my normal US checking account at a competitor bank.

– Poor interest rates on their savings accounts and TFSA (tax-free savings account) offerings. If you want to earn the best interest rate look elsewhere.

OK, so now what follows is for me to use this bank account and see how it all works out. Eventually once I feel I have enough experience with the account to come to a solid conclusion I will post a final review of it, so stay tuned to this blog (better yet subscribe to the RSS feed or the mailing list)

By the way the PC Financial website can be found at http://www.pcfinancial.ca

If you already have experience with PC Financial and you’d like to share it with the rest of the world I invite you to share it over here at this financial forum:

http://www.moneyguruforum.com

Cheers,

Alan