Is Your Cash Safe at the Banks? (Consumer Action: Personal Finance) | SmartMoney.com

Is Your Cash Safe at the Banks? (Consumer Action: Personal Finance) | SmartMoney.com: "For consumers who just want to park their savings somewhere, it seems perfectly rational to have a case of the jitters. Not only that, but the whole situation can be extremely confusing. Are the typically safe choices — money-market mutual funds, bond funds and bank savings accounts — really safe? Or are you better off leaving your cash stashed under the mattress?

The good news: Your savings or investments are most likely secure (savings accounts, for example, are FDIC-insured). But that doesn't mean you should blindly stow your money in one of these accounts without taking some precautions first. Here's what you need to know:

Bank savings, money-market savings and CDs
Bank savings and money-market accounts are the safest places to stow your cash for one simple reason: Through FDIC insurance, the government guarantees your money."

Yes, the Government insurance may protect us when a few banks fail... But if/when massive bank runs start happening, we may as well consider money stored in banks to be gone...