re: Should I take my money out of the bank

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for all you pussies who keep downvoting me ... state your case is to why this CANNOT happen

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You have a cumulative 4 DVs on those two posts. Relax.

There is a difference between keeping cash reserves and emptying your bank account. One is reasonable; the other is unreasonable.

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Should I take my money out of the bank

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Yes. Use your savings to purchase all the toilet paper. This will create another TP shortage, where you can triple your investment in less than a week.

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if I had more than the 250k FDIC limit in a bank I'd be concerned about that excess in one institution quite frankly

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Sure. It is wise to keep within the FDIC insured limit on deposit accounts. Use multiple banks if needed.

But it is likely not wise to "take my money out of the bank" like the OP said. If his house burns down, or a thief takes his cash, it's gone. (Same is true of cash in a safe deposit box; not FDIC insured, so hope the bank does not burn, flood, etc.)

If money is in an FDIC insured account, and the bank fails, he'll get the money back quickly, unless the US government fails, in which case we are all screwed no matter what.

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You think the large US banks are going to fail soon? Guess you think the Dodd-Frank stress tests are all just for show

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Funny you should mention the Dodd-Frank Act, because it is precisely that legislation that provides the Big Banks with the power/permission to conduct Bail-Ins rather than wait for congressional Bail-Outs. Most Americans aren't even aware that the Big Banks can do this.

Further, buried in the Federal Budget that was introduced on March 22, 2016, under Chapter 8 – Tax Fairness and a Strong Financial Sector, was a section titled “Introducing a Bank Recapitalization ‘Bail-in’ Regime.”

Simply stated, in the unlikely event of a large bank failure, the Government proposed it would reinforce that bank shareholders and creditors are responsible for the bank’s risks – not taxpayers.

What that means is that shareholders, bondholders and depositors, rather than taxpayers, are responsible for the bank’s risks in the event of a failure.

During the 2008 crash, banks that were deemed too-big-to-fail were bailed out by the government, meaning that We The People footed the bill.

Could Big Banks fail again? .... dunno really ... anything is possible. I don't think the industry is as as risk-leveraged as before ..... but you can bet the same crooked people are still running the show ... just as before. Have they earned your complete trust?

https://www.fdic.gov/news/press-releases/2020/pr20037a.pdf