Everyone should have some cash in their local bank

Discussion of the Cash portion of the Permanent Portfolio

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technovelist
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Everyone should have some cash in their local bank

Post by technovelist » Thu Mar 19, 2020 9:13 am

It's possible that the stock market may be closed at some point, in which case you might want to have some of your cash in an FDIC-insured account at your local bank.

That's where I'm leaving the proceeds of my most recent gold sale. Normally I transfer that to Fidelity but right now I want some institutional diversity.
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drumminj
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Re: Everyone should have some cash in their local bank

Post by drumminj » Thu Mar 19, 2020 9:15 am

I was thinking the same thing. Spreading cash out amongst banks, and moved a chunk to the local Credit Union that I usually just use for everyday banking (but keep a small balance).

Not that I use much cash when sitting on the couch at home all day....every day....sigh.
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technovelist
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Re: Everyone should have some cash in their local bank

Post by technovelist » Thu Mar 19, 2020 9:17 am

drumminj wrote:
Thu Mar 19, 2020 9:15 am
I was thinking the same thing. Spreading cash out amongst banks, and moved a chunk to the local Credit Union that I usually just use for everyday banking (but keep a small balance).

Not that I use much cash when sitting on the couch at home all day....every day....sigh.
Credit card bills come in even while you're on the couch, and you can pay them online.
It's good to have lots of cash in times like these.
I've also turned off all paper bills that I can switch to paperless. That's just one more potential source of infection gone.
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sophie
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Re: Everyone should have some cash in their local bank

Post by sophie » Thu Mar 19, 2020 9:24 am

Fidelity has a cash account with ATM card. You can set it to draw on core or money market funds in other accounts.

It didn't take long for the ATM card to arrive, so you might consider setting that up if you already have cash at Fidelity.

Second the need for a brick and mortar bank. Yet another reason to have an account at one...there are plenty.
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technovelist
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Re: Everyone should have some cash in their local bank

Post by technovelist » Thu Mar 19, 2020 9:43 am

sophie wrote:
Thu Mar 19, 2020 9:24 am
Fidelity has a cash account with ATM card. You can set it to draw on core or money market funds in other accounts.

It didn't take long for the ATM card to arrive, so you might consider setting that up if you already have cash at Fidelity.

Second the need for a brick and mortar bank. Yet another reason to have an account at one...there are plenty.
Hmm, interesting, but I think my local bank balance will be sufficient in any situation short of financial Armageddon.
And in the latter case my Texas Bullion Depository holdings should pay off.
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Re: Everyone should have some cash in their local bank

Post by mathjak107 » Thu Mar 19, 2020 10:28 am

local atm's here keep having runs on money . it can be difficult getting money via on line banking at times .

chase is closing 20% of locations and capital one is closing some .. they just closed capital one near me .....

so having a bunch of choices of local banks can be important
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jhogue
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Re: Everyone should have some cash in their local bank

Post by jhogue » Thu Mar 19, 2020 10:31 am

I practice bank diversification too.

1. My local bank is not only FDIC-insured, it survived the Great Depression bank runs.

2. I know my local bank manager by name. He personally answers my (rare) phone calls and emails.

3. My local bank has my safe deposit box. I can get an appointment to open it whenever I feel the need.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
Dieter
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Re: Everyone should have some cash in their local bank

Post by Dieter » Thu Mar 19, 2020 11:29 am

I keep about a months worth of funds in a local bank savings account, plus checking.

Online bank as well for checking / savings.

And Federal MM at Vanguard in taxable account.
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Vil
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Re: Everyone should have some cash in their local bank

Post by Vil » Thu Mar 19, 2020 3:35 pm

Consider the case when card payments do not pass through, due to the web backbone being either overloaded or simply temporarily out of order. We had that case last week in EU - some of the largest retailers had put signs on front doors - "only cash accepted"... Haven't seen that before.. So cash at hand might prove even more worth than cash at bank. Just my 2 cents.

PS. That reminded me about the funny pic in Craig's book, the Cash chapter..Life has strange sense of humour..
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Smith1776
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Re: Everyone should have some cash in their local bank

Post by Smith1776 » Thu Mar 19, 2020 3:54 pm

Browne said that instead of Treasury Bills, keeping cash deposited in 3 FDIC insured banks was an acceptable alternative.

We still see to this day that Browne was ahead of his time.
For the money you can't afford to lose, why would you invest it in anything other than the PP? ???
Check out the Goldsmith PP: https://www.gyroscopicinvesting.com/forum/viewtopic.php?f=1&t=9613
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Re: Everyone should have some cash in their local bank

Post by Tortoise » Thu Mar 19, 2020 4:59 pm

Vil wrote:
Thu Mar 19, 2020 3:35 pm
Consider the case when card payments do not pass through, due to the web backbone being either overloaded or simply temporarily out of order. We had that case last week in EU - some of the largest retailers had put signs on front doors - "only cash accepted"... Haven't seen that before.. So cash at hand might prove even more worth than cash at bank. Just my 2 cents.
Definitely. Part of every person's emergency fund should be physical cash in case card-based systems temporarily go down.
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Re: Everyone should have some cash in their local bank

Post by dualstow » Thu Mar 19, 2020 5:04 pm

technovelist wrote:
Thu Mar 19, 2020 9:17 am
It's good to have lots of cash in times like these.
I've also turned off all paper bills that I can switch to paperless. That's just one more potential source of infection gone.
But isn't the cash just as dirty? When I got change at the farmer's market, I separated it from my other cash and now I don't want to touch it until I wash it and maybe iron it.
In China they run the currency through UV light.
Statue in the square /Meant so much when it first stood
People come from far and near/ To bless them if, bless them if it would
Strange times are here
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