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Oh yesterday the Cyprus government decided take.
40% of assets of large deposits.
This is after the European Union okayed -- thirteen.
Million dollar bailout package to save the country from financial -- could it happen in the US.
That's -- big question bring in now Kate Rogers foxbusiness.com.
I -- good to see you since you so could it well.
In short now and there are several reasons why so insight race when you have money in and day there is different thing.
It's insured at -- -- whereas here in the US we have money in in New York based bank for example.
The federal government so insurance at BI DIC.
Exactly so if you have over 250000 dollars -- that money's not -- But below that threshold it is in short so that's one reason why are banking structures are different.
Another reason why is that the glass is a currency issuer -- Cyprus is experiencing so they cannot print their own money.
And then thirdly that can't -- has never lost a -- And -- to -- Ben Bernanke of its insured assets since it was created and so would be really really rare.
-- seem like it would take from the media for this to happen until pretty much in short it couldn't happen in particular asking in their concern into a valid question.
Absolutely valid questions really make it okay should take them any -- in the mattress after Ramadan and a sailor is freezer right we have free.
-- what about money markets Kate because -- and not in short they're not -- -- money market accounts usually have a larger deposit minimums -- usually have to put more money in them.
And they're not insured but they do bring a higher return money that you're having on so.
That have -- money market accounts also shouldn't be too concerned and there's a few reasons why.
Number one the average American doesn't even have enough money having -- -- so is rare that people have money in these money market accounts that they.
Can't stand to lose also another -- is that the Federal Reserve has never elect these money market accounts -- even at the height.
Of the financial crisis in 2000.
People never lost their mind.
You lose money market account so it is safe but it's another valid question because -- not -- so that's a scary thing for people who have money in there are considering opening up a money market.
So what's particularly so they take away here number -- is that.
You need to have your money in -- well capitalized bank and I spoke -- him Faris from fort Pitt capital investors.
-- a money manager there and a vice president and she said.
The better capitalized banks aren't necessarily the biggest -- gonna ask you how do we know while they're not necessarily the ones on every corner of the ones out -- the biggest -- advertising campaign's immediate smaller bank -- If you're you feel safe with your money there in in you're not necessarily making tons of money off of the money that you -- there's an interest rates may not be that great.
That doesn't matter because your money's probably see for there.
Another thing she said is don't try and make money off of the money that you have in your debit account for example you don't need.
A high interest -- on money that you need to live off that's money that you need to rewind quickly.
I think it -- that you say that you shouldn't necessarily feel a 100% -- not for Cambodia.
But don't just assume because you have the bank -- on every corner for the -- at a -- when he's okay there that they won't run out of well.
Or how would that work well she said would -- -- let me how to protect yourself what do we know which thanks to go to.
She she said and I thought that this is really telling us is that I never going to be the person have to find out how to get my money back -- -- is that -- -- -- -- African leader on so you have to think -- diesel analysts see that you feel with your bank and like she does not necessarily the biggest banks is -- that there well capitalized and you feel -- your -- okay.
I don't know that made me feel OK he waits until about one more thing but you don't know sorry and and just you know -- if you have over 250000 dollars in the bank that you need to have an estimate your small business owning up to me K -- you have to pay bills with that money.
Once you hit it 200 victory in another ask don't exactly 500 that -- -- think one thing because -- not enjoy yep -- -- that's that's definitely Smart you have more tips on this on foxbusiness.com.
More about what we talked about and could it ever happened here -- saying okay rod is really good up and likely -- about getting even if you've seen this show yet in the midst.
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