First off -- this isn't about making a play on exchange-rate movements or fear of an impending dollar collapse or anything like that.
A elder family member in one of the PIIGS of Europe is concerned about the safety of his retirement savings (CDs and savings account, from what I can tell) from bank collapse etc. I don't know if these fears are well-founded or not, but if these basic investments were in the U.S. I could easily put his mind at ease and help identify FDIC-insured accounts (the value is under the 250K limit). But I'm clueless about the laws and rules overseas and not fluent in the language to figure it out.
One idea that came up was whether he can/should transfer his money to an FDIC-insured bank account in the U.S. But because the money will continue to be withdrawn/spent in euros over the next couple of decades, I cautioned him that adding currency exchange-rate risk is probably not a good idea in retirement. Which of course led to the question of whether one could maintain an FDIC insured bank account in the U.S. that is denominated in foreign currency, in this case euros.
I started poking around the FDIC website, but haven't found this question addressed in any of the FAQs I've looked at, and general internet searching reveals a pretty sketchy collection of scams based on any searches having to do with euros. I'm vaguely aware of Everbank, but it seems a little shady and I wouldn't feel comfortable opening a bank account for a pensioner in a bank like that even if it is legit.
I know we have a few ex-pats on the boards, and maybe some others have investigated this. Does anyone have any idea of where I can find answers to this question, or has anyone found this out already?
Many thanks for any advice.
A elder family member in one of the PIIGS of Europe is concerned about the safety of his retirement savings (CDs and savings account, from what I can tell) from bank collapse etc. I don't know if these fears are well-founded or not, but if these basic investments were in the U.S. I could easily put his mind at ease and help identify FDIC-insured accounts (the value is under the 250K limit). But I'm clueless about the laws and rules overseas and not fluent in the language to figure it out.
One idea that came up was whether he can/should transfer his money to an FDIC-insured bank account in the U.S. But because the money will continue to be withdrawn/spent in euros over the next couple of decades, I cautioned him that adding currency exchange-rate risk is probably not a good idea in retirement. Which of course led to the question of whether one could maintain an FDIC insured bank account in the U.S. that is denominated in foreign currency, in this case euros.
I started poking around the FDIC website, but haven't found this question addressed in any of the FAQs I've looked at, and general internet searching reveals a pretty sketchy collection of scams based on any searches having to do with euros. I'm vaguely aware of Everbank, but it seems a little shady and I wouldn't feel comfortable opening a bank account for a pensioner in a bank like that even if it is legit.
I know we have a few ex-pats on the boards, and maybe some others have investigated this. Does anyone have any idea of where I can find answers to this question, or has anyone found this out already?
Many thanks for any advice.