Friends, the question may look silly and typical a women question (that's why I'm afraid to put in before my hubby) but the way US banks are coming up with losses (everyday), due to mortgages going sour. Is it safe to continue having bank accounts in States? I hope no effect comes on saving accounts. Or will it be good to move funds to India or Canada.

Just curious what you guys will advise.

Jona

Savings accounts are insured upto $100,000 by the FDIC. I don't see any reason to worry about it

Keep your money in Indian Banks and have peace of mind!

I would be scared to put a lot of money (especially the long term savings) in Indian banks. Each account including NRI ones are only insured for Rs. 1 Lac (C$2500).

Credit has been growing fast in India and the banks are also exposed to big mortgages taken by people to buy real estate at inflated prices. Add to that a lack of an established credit rating and a legal recourse system, I feel the chances of getting burned with Indian banks is much higher than with the US ones.

I am not saying that such a thing will happen in India or the US. It's just if such a thing does happen, I will be more confident about my money being safe in a developed country like the US as opposed to India.

just my 2 cents

I agree, the way Indian banks are offering loans (left-right...everywhere) it seems...in a way we are following US and before one realises the sub prime problem is in our home too.

Hi Jonav,

If you are worried about your savings in US Banks, you can transfer the money to Canadian Bank and still keep the same in US Dollars.

You can open a TD bank US $ Account and link it with either ING BANK CANADA US$ savings account or ICICI BANK CANADA US$ savings account. That way you would have peace of mind and also earn interest from 3% to 5% depending on the bank you chose. However, please note that the US$ savings account are NOT CDIC insured.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Pramod,

Did you mean to say USD accounts are NOT CDIC insured?

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Dimple2001