Donald Trump and his surrogates have spouted complete nonsense for months, and appeal strongly to a single segment of the US population. There is also a highly reactionary element of the US population that may already realize that he is unfit to leave his gilded perch above 5^th Avenue (and is unfit to serve in any elected role), but who just might vote in his favor in the event of a terrorist attack in the weeks immediately preceding the election. It goes without saying that Donald Trump’s election and his economic policies would lead to immediate and unprecedented global economic crises.

Unfortunately, the scenario isn’t entirely unprecedented. As it entered 2004, Spain had the strongest economy in Europe. Under Prime Minister Jose Maria Aznar and the Partido Popular (PP), Spain’s economic policies were attracting investments of large multinationals from around the world. Aznar also lead Spain to be active in the US-led campaign in Afghanistan and was preparing to deploy troops to Iraq, which was highly controversial.

Aznar had been decisively leading in polls prior to the general elections scheduled for the Spring of 2004. However, when Al Qaeda operatives struck Madrid’s Atocha station on March 11, 2004, they not only killed 192 and injured over 2000, but also caused Aznar to be defeated days later by Jose Luis Rodriguez Zapatero and the Spanish Socialist Workers’ Party. In the years that followed, Zapatero and the Socialists pursued a xenophobic policy that removed Spain from involvement in military campaigns abroad. They also adopted economic policies that laid waste to the Spanish economy.

One way to partially protect oneself from a similar situation in the US is to move money now to online savings accounts and short term CDs.

Editor’s Note: Unlike the situation that the US faces, Jose Luis Rodriquez Zapatero was not a Donald Trump. While he destroyed the Spanish economy, he did not wage war against minorities or women in Spain. He did not unilaterally control access to nuclear weapons. While the US faces a risk of a similar scenario, it faces a still much greater risk to the country, and to putting world civilization in danger in the current election.

Two days ago, Chase “upgraded” their user interface for Internet access. The mobile interface was not affected, fortunately.

Whereas Chase previously had an outstanding user interface which clearly showed the user the balances in all of their accounts right in the middle of the computer screen, followed by the balances in their Chase credit cards and other products, that information has now been moved to a left navigation which requires finding a hidden left scroll tab to navigate. The center of the screen is now dominated by all sorts of recent transaction information, completely overwhelming the user when they sign in.

It seems that Chase had to have made these changes without any sort of advanced customer notification or feedback. It is unlikely they even had a small focus group as even a gerbil would have been able to tell them that they have damaged their site. Rather, it seems that Chase was overanxious to add the ability for a user to print their latest statement directly from the login screen (I find no other functionality has been added, and most other functionality now requires working through Chase’s help menus).

We live in a banking world where Internet access is increasing valuable, and where people of all ages depend on receiving their information 24/7 in a clear and transparent manner. Chase, especially, has made a concerted effort to get user to perform transactions online instead of coming to their branches (including virtually eliminating tellers in New York). Their latest move makes it essential for those same users to look to leading online banks as more appropriate places to do their banking.

See the best savings online rates here.

Back in June 2016, I had a drink with a very smart friend who explained to me that he had all of his savings concentrated in two online savings accounts, including over $1 million in a savings account at subsidary of a UK bank, and that he slept well at night. Less than a week later, the UK's referendum on Brexit caused that bank to appear - at least for 24 hours - to be spiraling towards receivership. And, of course, less than a decade earlier, Lehman and Bears Stearns seemed to spiral into catastrophe from nothing, leading to sleepless nights for many, including savers who had cash deposits with those institutions.

Having money in excess of the Federal Deposit Insurance Corporation ("FDIC") limits - or National Credit Union Administration ("NCUA") limits for credit unions - defies the very point of having a savings account, and exposes you to unnecessary risks. There are so many FDIC insured banks with strong savings and short term CD rates that even the very wealthy can divide their money in $250,000 increments in a way to avoid overexposing themselves to a bank failure. (The super wealthy – those with tens of millions of dollars in cash - should look at CDARS programs to protect their assets from bank failures).

What is covered?

FDIC insurance is pretty simple. All you need to know is that it covers bank accounts, such as checking accounts, savings accounts and Certificates of Deposit. It does not cover other products you may purchase from a bank, such a mutual funds, commodities, annuities, or life insurance. (In the event of a bank failure, SIPC insurance may protect certain securities from disappearing, although it does not insure the value of those securities). The attraction in FDIC insurance is that backed by the full faith and credit of the US. As long as you stay within the limits, every penny in your bank accounts is going to be deposited in an account with your name on it the day after the bank becomes insolvent.

To be fully insured, you must make sure that your deposits follow the FDIC guidelines and limits. These guidelines are based on different account ownership categories, with up to $250,000 of coverage allowed for each category of account ownership you have in one bank, not by how many accounts you have in that bank. It is important to understand that if you have a CD with $250,000, a savings account with $250,000, and checking account with $100,000 at the same bank in the same ownership category, you are exposed to the bank in the amount of $350,000.

The account ownership categories are:

1. Single Accounts

A single account is a deposit held in one person’s name only or held in account for one person only.

2. Certain Retirement Accounts

This includes Traditional IRAs, Roth IRAs, SEP-IRAs, SIMPLE IRAs and self-directed defined contribution plans

3. Joint Accounts

A joint account is a deposit owned by two or more people.

4. Revocable Trust Accounts

In general, the owner of a revocable trust account is insured up to $250,000 for each unique beneficiary.  On April 1, 2024, the FDIC limited total coverage of all trust accounts to $1.25 million.

5. Irrevocable Trust Accounts

Irrevocable trust accounts are held in connection with a trust in which the owner gives up all power to cancel or change the trust.  On April 1, 2024, the FDIC limited total coverage of all trust accounts to $1.25 million.

6. Employee Benefit Plan Accounts

These are a deposit of a pension plan, defined benefit plan or other employee benefit plan that is not self-directed.

7. Corporation/Partnership/Unincorporated Association Accounts

Deposits owned by corporations, partnerships, and unincorporated associations, including for-profit and not-for-profit organizations.

8. Government Accounts (also called Public Unit accounts)

The United States, including federal agencies

• Any state, county, municipality (or a political subdivision of any state, county, or municipality), the District of Columbia, Puerto Rico and other government possessions and territories
• An Indian tribe

For complete guidelines for each type of ownership category, the FDIC has prepared this page. If you have specific questions about your own circumstances you should use the FDIC’s Electronic Deposit Insurance Estimator.

What about NCUA coverage?

The National Credit Union Administration provides very similar, though not identical coverage, to the FDIC that is also based on a $250,000 cap for each ownership category (with similar ownership category) for federally chartered credit unions. State chartered credit unions may also be protected so long as they display the NCUA logo on their website and in their facilities. If you think you may be in excess of NCUA limits at a single credit union, you should download and read the NCUA’s insurance brochure.

While all banks listed on BestCashCow.com are insured by the FDIC, please note that we also provide information on state chartered credit unions on BestCashCow.com that are not insured by the NCUA (this information can be found on the credit union's information page).

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