Personal Finance. What Happens To Money In Personal Bank Accounts When There Is A Depression?

Personal Finance : What Happens To Money In Personal Bank Accounts When There Is A Depression

I overheard someone saying that during the past depression, there were monies lost from peoples personal bank accounts. Is that true? ~~~ 2 year old ~~~

Best Answer To Personal Finance Question

yes, very true. but the last depression was in the 1930s. after which the government created the FDIC in order to restore public confidence in the banking system. now, all FDIC insured banks have their accounts insured up to 100,000 dollars each account.

All Answer To Personal Finance Questions

Answer 1

If it is, the "depression" wasnt what took it, just bank fraud/error. They could have meant that inflation in a depression devalued money in peoples bank accounts since the interest they pay didnt keep up with the rate of inflation. Basically your spending power is eroded sometimes in a recession.

Answer 2

yes, very true. but the last depression was in the 1930s. after which the government created the FDIC in order to restore public confidence in the banking system. now, all FDIC insured banks have their accounts insured up to 100,000 dollars each account.

Answer 3

Of course, that is what the big problem, people all rushed to get their money from the bank but it wasnt FDIC approved therefore, the bank couldnt ensure you got your money when you wanted to take it out, and people lost their money. Thats the big thing.