any tips on finding a local bank (socal) that doesn't have derivatives risk? afaictl anything that has less than $1billion in assets is what to look for , and I'm having no luck finding anything like that.
They aren't technically banks though... Putting money in a credit union means you agree to not being able to withdraw all your money at once -- you have to set up a withdrawal payment plan to do that.
Imagine you and all your neighbors agreed to put money in the same vault and hire someone to manage that vault.
The money goes out to investments like the big banks, but if anyone tries to take all their money out they have to call back all those investments immediately, otherwise everyone goes bust.
You also have daily spending limits, at least for non-cheque and debit card expenditures.
Typically, you don't want more than around 14,000 in a federal credit union, but they are safer than banks because they don't get all the safety nets like the big bankers, so they invest more wisely.
is there a way to lookup which local banks or credit unions level of risk?
so $0 is what you want
well that's how half of them are listed
any tips on finding a local bank (socal) that doesn't have derivatives risk? afaictl anything that has less than $1billion in assets is what to look for , and I'm having no luck finding anything like that.
You could try federal credit unions.
They aren't technically banks though... Putting money in a credit union means you agree to not being able to withdraw all your money at once -- you have to set up a withdrawal payment plan to do that.
Imagine you and all your neighbors agreed to put money in the same vault and hire someone to manage that vault.
The money goes out to investments like the big banks, but if anyone tries to take all their money out they have to call back all those investments immediately, otherwise everyone goes bust.
You also have daily spending limits, at least for non-cheque and debit card expenditures.
Typically, you don't want more than around 14,000 in a federal credit union, but they are safer than banks because they don't get all the safety nets like the big bankers, so they invest more wisely.
I have accounts at Penfed and TowerFederal CU. I should move some of my money to those and it'll be safer than Bank of America?