Questions tagged [deposit-insurance]

Deposit insurance is a measure implemented in many countries to protect bank depositors from losses caused by a bank's inability to pay its debts when due.

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43
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7answers
253k views

How do rich people guarantee the safety of their money, when savings exceed the FDIC limit?

I am curious how a millionaire would guarantee the safety of his money, given that the FDIC only insures up to $250K of an individual's deposits at a bank. If someone had $3 million that they wanted ...
34
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4answers
5k views

Who pays the premium for bank deposit insurance?

Normally, when I want insurance coverage (e.g. for my car and house), I have to pay a premium to the insurer. My bank account comes with deposit insurance to insure me against bank collapse. It looks ...
15
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5answers
44k views

I have more than $250,000 in a US Bank account... mistake?

I'm currently carrying a balance of $356,000 in one bank account, which is in excess of the FDIC insured maximum of $250,000. I owe $100,000 in 2014 taxes (which will be paid by April), and the ...
9
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3answers
403 views

What bank deposits are insured in the U.S.?

What kind of bank deposits in the U.S. are insured against banks going under? What do I need to look out for to make sure my money is safe?
9
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1answer
5k views

Is SIPC coverage on cash as strong as FDIC?

I'm considering opening a brokerage account with a broker that is requesting $10,000 minimum funding. That money will not go to an FDIC covered bank account. But the broker does have an SIPC insurance....
7
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1answer
352 views

How does the FDIC in the United States work?

Issues in my head raised by the quesion about withdrawing money from a bank before it goes under If the purpose of the FDIC in the United States system is to insure deposits, how is the money the ...
7
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2answers
1k views

How does bank deposit insurance work in Singapore?

When I check bank web sites in Singapore, they usually post something like below: Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under ...
6
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4answers
8k views

FDIC vs SIPC: Are they the same?

Before posting this question I did read Is SIPC coverage on cash as strong as FDIC?, but the answer did not seem to make much sense/lacked many answers to help clarify for me. I was doing some ...
6
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1answer
321 views

Why does CDIC insure deposits only until $100,000?

$100K CAD appears a low maximum, esp. for retirees. FDIC does so until $250K USD.
6
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1answer
1k views

What effect will Brexit have on EU-wide Deposit Guarantee Schemes (e.g. FSCS)?

Across the EU, the Deposit Guarantee Schemes Directive1 (DGSD) requires member states to operate at least one scheme to provide protection for deposits with regulated financial institutions within ...
5
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4answers
429 views

Doesn't the existence of FDIC incentivize savers to put their savings in the most risky bank?

The riskier something is, the more interest/coupon would be demanded by the lender. In the case of choosing where to put my savings, wouldn't the existence of FDIC incentivize searching for the bank ...
5
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1answer
146 views

National deposit guarantee schemes

I am just checking this FinTech startup called Raisin (previously SavingGlobal) where they advertise that you can make deposits on banks across Europe. They say, that each deposit is 100% covered by ...
3
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3answers
226 views

FDIC vs SIPC on Robinhood

I'm really confused how Robinhood insures cash. I am NOT talking about the cash management bank sweep program, where the money is insured by the banks....that is quite trivial. I'm talking about ...
3
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2answers
643 views

What is covered by CDIC savings deposit insurance?

In the unlikely event that a financial institution fails in Canada, what is covered by the Canadian Deposit Insurance Corporation? What is the limit of coverage?
3
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1answer
470 views

Deposit insurance in India: Is the limit per deposit, or per individual?

Is the deposit insurance of 1 lakh, per deposit or per individual (PAN)? If it is per deposit, would it be better to have for example 4 FDs of 1 lakh each instead of one FD of 4 lakh? (Of course it ...
3
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1answer
2k views

What will happen if private bank goes bankrupt in India

I saw on news that banks in India are under losses. I was just wondering, are banks in India federally insured? What happen if banks like Yes Bank or IndusInd bank goes bankrupt? How will we recover ...
2
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2answers
578 views

Has anyone ever lost money over the FDIC limit?

Has anyone lost money because a bank failed and they had more than $250k in deposits? As in, has this ever happened?
2
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0answers
93 views

Is my money insured against bank failures during a wire transfer?

Suppose I am sending money by international wire transfer from my FDIC-insured bank account in the US to my CDIC-insured bank account in Canada. Suppose one of the banks become insolvent during the ...
1
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1answer
224 views

Is money in a European bank current account guaranteed by the state? Which state/fund guarantees?

I have a sum of money in a European bank, and I prefer to have it in a current account for two reasons. One, I don't know how much over the coming year I will need to spend without notice and two, the ...
1
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1answer
112 views

For deposit insurance limits, are accounts cross-collateralized?

The FDIC deposit insurance limit is $250,000 per depositor. Let's say I have $350,000 in my savings account and a loan with an outstanding principal of $200,000. The accounts are with the same bank. ...
1
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1answer
410 views

FD and liquidation of cooperative Bank (patsanstha) in India

I've my money stuck in cooperative patsanstha (bank) since last 4-5 years. Money was invested across multiple FDs (worth Rs. 1,50,000) and after banks liquidation they deposited the money to saving ...
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2answers
186 views

What happens to the money over the FDIC limit when a bank fails?

I had about $4-5K at Countrywide Financial and when it became bankrupt. I recovered all my money thanks to the FDIC. I didn't encounter any problems when recovering the money, but that was probably ...
0
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3answers
114 views

Paying for a house in cash and FDIC insurance

Suppose you are expecting (for example) to buy a 1M house in cash. Before you find the house, you keep the 1M in four different bank accounts with 250K each in order for them to be FDIC insured (this ...
0
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1answer
206 views

EU deposit guarantee fund for failed state guarantee

I am not able to find reliable information on this topic. Generally speaking, all deposits in EU banks are secured by national guarantee fund up to about 100k. Image a national fund would fail because ...
0
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2answers
76 views

Are intra-state and out-of-state online accounts insured by the FDIC?

Are intra state and out of state ONLINE savings/checking/CDs/money market accounts FDIC insured same as local brick & mortar bank accounts?
0
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1answer
310 views

Why does DICO insure until $250K, but CDIC until $100K?

This question doesn't duplicate this other that doesn't compare CDIC with DICO. As of Dec 6 2018: DICO [Deposit Insurance Corporation of Ontario] insures deposits up to $250,000. We CDIC insure ...
0
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0answers
69 views

Does obtaining EU banking license directly make retail deposits up to 100k EUR covered by national guarantee fund?

I was unable to find any source connecting directly banking license and deposit guarantee. That is in particular interesting in regard to operating financial businesses after they obtain banking ...
0
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0answers
34 views

Are foreign currency bank accounts in Brunei protected by deposit insurance?

All retail banks in Brunei are members of the Brunei Darussalam Deposit Protection Corporation (BDPC). The deposit insurance scheme protects up to 50,000 BND per person per bank in the event of a bank ...
0
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0answers
69 views

What is Deposit Insurance for Trading?

I was reading a news article for a particular stock and saw an advertisement boldly proclaiming "Lost Your Money? We will pay you back!" Suspicious as to what this could possibly mean, I followed ...
0
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1answer
238 views

Does CDIC deposit insurance just protect the principal or the interest also?

Refer to this page on the CDIC website. It is not clear to me whether CDIC will just insure the principal that I put in my TFSA GIC or also the interest earned. i.e If I open a GIC with a bank at 2% ...
0
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1answer
154 views

How to search efficiently for financial institutions, credit cards, etc (At least in Canada)?

I tried Google to seek high-rate savings accounts, which effected websites like https://www.highinterestsavings.ca/chart/, the broadness, newness, and reliability of which I doubt, because for example,...