You know, I reckon your level of concern on banking health may possibly relate to which political party you hang your hat at. Sounds a bit out of the ordinary? Well, brace yourselves for some rather nifty stats.
A newly published Gallup survey, fresh out of the oven, shows that nearly half of us Yanks are feeling just a tad jittery about the safety of our finances with the banks. Interestingly, the survey results show clear links between various factors like political affiliations, educational achievements, and income levels when it comes to concerns over banking stability. Doesn’t that just tickle your curious bone?
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WHAT THE NUMBERS REVEAL (Drumroll, Please!)
Ah, numbers, my dear old frenemies! Gallup’s latest quest for knowledge tells us that, following some rather publicized bank implosions, 48% of Americans are breaking a sweat over whether their money is tucked away safely in the banks. The April survey of 1,013 participants brought forward some intriguing patterns:
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POLITICAL LEANINGS (You Can’t Make This Stuff Up!)
The Republicans & Independents trumped the Democrats when it comes to banking worries:
- Among Republicans, 55% are feeling somewhat shaky about their basket of eggs (aka bank deposits).
- Independents are just behind with 51%, riding the same wave of worry.
- With 36%, Democrats are the laid-back folks on this street.
Interestingly, during the heart of the Great Recession in 2008, we uncomfortably find the tables turned: 55% Democrats vs only 34% Republicans were distrustful of banks. Ah, the good ol’ days when trends stayed put, eh? Predictable as they were, one must consider the Republicans were “at the helm” in 2008, whereas now, the good old U.S. of A is led by a Democrat.
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EDUCATIONAL BACKGROUND
Dipping into the education pool, we reveal:
- A whopping 54% of those without a college degree are somewhat uneasy about the security of their funds.
- Taking another fork in the lake, just 38% of college graduates echo similar sentiments.
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WHY THIS MATTERS (It Really, Really Does)
But why does any of this matter? Well, let me tell you. It wasn’t long ago, as recent as March, when 70% of us good-natured Americans put our trust in our banks, expecting them to, you know, do right by our money, despite a month peppered with sizable bank failures.
Sadly, it seems this trust is taking on water, fast. Surprisingly enough, it seems that many of us have a teeny weeny misunderstanding when it comes to the actual risks to our monies. Those earning under $40,000 per year, 50% are concerned about their money’s safety. Those earning between $40,000 and $99,999 are hanging on a similar ledge with a 52% worry rate. On the other hand, only 40% of the big earners, those pulling in north of $100,000 share a similar dread.
Yet, paradoxically, it’s often the low-income Americans that are the most safeguarded, thanks to the Federal Deposit Insurance Corporation (FDIC) insuring deposits up to a cool $250,000 per account holder.
What does this all tell us? Quite simply, it uncovers that a good number of us folks aren’t completely acquainted with how FDIC insurance quite works, especially when it comes to protecting our savings if a bank goes belly up. This survey also highlights how the political winds may sway people’s concerns about their bank deposits, which often changes depending on who’s currently occupying the presidential throne.
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So, how about that? Quite something, huh? But let’s not leave it there. Get in on more hot gossip from the financial town.
Here’s more from Money:
- Sweating over stock market rollercoasters? Here’s why moving your money to cash could backfire
- Our pals at the Fed hike rates again. Question is, will they stop?
- And for good measure, the plump pickings of high-yield savings accounts for 2023