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Questions tagged [fdic]

The Federal Deposit Insurance Corporation (FDIC) is a United States government-owned corporation that provides deposit insurance to US banks and thrifts.

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2 answers
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Do US banks cover the loss of money in checking accounts due to identity theft or hacking through the FDIC or some other ways?

This question is NOT about credit card accounts. It is about checking accounts with US banks. Suppose some US citizens have checking accounts with US banks, and the customers lose money due to either ...
Job_September_2020's user avatar
2 votes
2 answers
165 views

What is the difference for an end user between a US bank account, and a US brokerage account that only stores the money in "cash"?

A common response to my questions is "why exactly do you need to know this". So I'll start by saying that I am a US expat with money in the US. Recently, many banks started requiring 2FA ...
HanMah's user avatar
  • 345
0 votes
1 answer
82 views

What are alternatives to cash deposits, if you need short term liquidity above the FDIC insured limit? [duplicate]

Could you, for example, invest everyting into Bonds or ETFs? Are they safe in case the bank goes bankrupt? Are they liquid enough? What is the timeframe to convert these alternatives to cash? Minutes, ...
Reto Höhener's user avatar
4 votes
2 answers
702 views

How would a small investor protect their nest egg if it goes beyond SIPC limit and bank accounts if beyond FDIC limits [duplicate]

Sometimes I wonder if I won a few million in the lottery, how would I protect it? There is news that a big company like Roku had $487 million with a failed bank (SIVB). I wonder how the small investor ...
puzzled's user avatar
  • 1,016
26 votes
4 answers
5k views

What happens to depositors at Silicon Valley Bank?

Today, Silicon Valley Bank is bankrupt, the second largest bank failure in American history. What happens to its depositors? Will they be able to withdraw (some of) their money? How long will they ...
Quitting Due To Antisemitism's user avatar
-2 votes
3 answers
533 views

In theory, can FDIC fail?

In theory, can FDIC fail? If it goings default, who is going to cover the customers? Will the federal reserve automatically prints money to keep FDIC alive? Or such decision must be made through a ...
dodo's user avatar
  • 161
1 vote
1 answer
47 views

Core Processing - Month & Year Length in Calculations

I'm looking for information into how financial institutions and their core processors perform their calculations. More specifically, how the month and year lengths are factored in. First, are there ...
FamousAv8er's user avatar
0 votes
1 answer
127 views

Why are the SIPC and FDIC limits not increasing with inflation?

Social Security benefits increase with Inflation. So I am wondering what prevents law makers from making FDIC and SIPC limits increase with inflation as well?
puzzled's user avatar
  • 1,016
-1 votes
3 answers
266 views

Paying for a house in cash and am concerned about FDIC insurance for funds used to make the purchase

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 ...
Fully Insured's user avatar
1 vote
2 answers
342 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 ...
puzzled's user avatar
  • 1,016
4 votes
2 answers
4k 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?
user avatar
2 votes
1 answer
234 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 ...
Flux's user avatar
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4 votes
3 answers
316 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 ...
user98499's user avatar
1 vote
1 answer
2k views

Is the $250,000 individual FDIC limit per account or per person? [duplicate]

In the United States most banks are insured by the FDIC, for individuals up to $250,000. If I have $200,000 in bank A and bank A fails the FDIC will make sure I get my money back. If I have $400,000 ...
zelinka's user avatar
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6 votes
5 answers
550 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 ...
Flux's user avatar
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1 vote
1 answer
361 views

FDIC coverage for joint account with "primary" and "secondary" account holders

My wife and I share a Capital One savings account. It was mine before we married; when we did I made it a joint account by adding her. The account details within the bank site now show it as a "joint" ...
The111's user avatar
  • 177
1 vote
1 answer
161 views

How does the US FDIC apportion its premiums?

I'm not from the US, and the banking system there is vastly different to how most other countries operate. So, I'm a little confused about how the FDIC apportions its premiums (the deposit insurance ...
Only_me's user avatar
  • 120
0 votes
2 answers
83 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?
It'sP's user avatar
  • 1
1 vote
0 answers
254 views

How do the ultra rich protect their money? [duplicate]

FDIC insures each account up to $250,000. A few billion / 250,000 = way too many bank accounts. So how do the ultra rich insure their fortunes?
Ken - Enough about Monica's user avatar
1 vote
1 answer
156 views

Business Bank Account vs Personal Bank Account

What is the best practice when opening up a business bank account for a business that I anticipate to be worth more than $250,000. Does the FDIC insure amounts more than this for business accounts? Or ...
Cody Rutscher's user avatar
4 votes
2 answers
2k views

Does FDIC insurance at one bank cover each account?

I was reading that FDIC insurance covers accounts up to $250,000. Does this mean each account you have at a bank is insured up to $250,000 or is $250,000 the maximum for all accounts at a bank? Also,...
Rich's user avatar
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8 votes
4 answers
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 ...
ggiaquin16's user avatar
1 vote
1 answer
118 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. ...
John Wu's user avatar
  • 241
5 votes
2 answers
288 views

Is there such a thing as a non-FDIC savings account, which earns better interest?

I'm sticking to the question that I'm asking but here's the background. I make decent pay and I'm also self employed. I invest money in an IRA at my own discretion each month, so I'm covering my ...
RLH's user avatar
  • 835
7 votes
2 answers
551 views

How do I protect money above the FDIC coverage limit?

Recently, I received an inheritance of $1.2 million. I'm planning on investing 1/4 of that in properties. With that being said, I'm still way above the FDIC coverage. Besides investing, what else ...
Jackie's user avatar
  • 71
5 votes
1 answer
378 views

MM account disappeared after NetBank failure. How to recover funds?

First-time poster. :O) In 2002 I opened and funded an online-only account with NetBank; the terms of the promotion required funds remain untouched for an extended period. Once the account was funded ...
SuzyD's user avatar
  • 101
6 votes
4 answers
1k views

Is it possible to get a 3% yield that is FDIC insured or super low risk?

I just graduated from college and i am already planning my retirement. I know about 401k and i have that figured out already but in terms of money sitting in my bank account post retirement, assuming ...
Bubbletea's user avatar
1 vote
4 answers
296 views

How can I ensure that a CD sold by a brokerage is FDIC protected?

I was told by my broker that the amount of money I invest would be spread across multiple banks (which are FDIC insured) so that at each bank the amount would not exceed $250K. Is this how CDs offered ...
TV Mohini's user avatar
  • 111
16 votes
5 answers
47k 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 ...
Fixee's user avatar
  • 4,524
9 votes
1 answer
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....
Ofer's user avatar
  • 119
47 votes
9 answers
262k 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 ...
7529's user avatar
  • 3,753
2 votes
1 answer
411 views

How does the FDIC know how much to insure trust accounts?

This page shows FDIC insurance on trust accounts is subject to the number of beneficiaries. Yet a bank will open a trust account given only the number of trustees, not the number of beneficiaries. ...
Witness Protection ID 44583292's user avatar
3 votes
1 answer
262 views

Are interest bearing checking accounts (rewards checking) covered by FDIC?

I see a lot of banks offering rewards checking accounts (maintain the account in an active status by doing x transactions/month,direct deposit, paper less statements etc, in return you yearn high apy. ...
ram's user avatar
  • 131
7 votes
1 answer
374 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 ...
MrChrister's user avatar
  • 25.3k
6 votes
6 answers
948 views

Would you withdraw your money from your bank if you thought it was going under? [closed]

The Texas Ratio attempts to measure how well a bank can cover its losses on nonperforming loans. A ratio over 100 indicates the bank is in trouble. I cross referenced the texas ratio for banks ...