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.
33
questions
0
votes
1
answer
78
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, ...
- 109
4
votes
2
answers
685
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 ...
- 1,014
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 ...
- 2,610
-2
votes
3
answers
458
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 ...
- 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 ...
- 115
0
votes
1
answer
112
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?
- 1,014
-1
votes
3
answers
216
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 ...
1
vote
2
answers
298
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 ...
- 1,014
4
votes
2
answers
3k
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?
user101781
2
votes
1
answer
203
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 ...
- 16.9k
4
votes
3
answers
249
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 ...
- 41
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 ...
- 121
6
votes
5
answers
546
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 ...
- 16.9k
1
vote
1
answer
265
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" ...
- 177
1
vote
1
answer
160
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 ...
- 120
0
votes
2
answers
78
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?
- 1
1
vote
0
answers
252
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?
1
vote
1
answer
147
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 ...
3
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,...
- 1,715
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 ...
- 255
1
vote
1
answer
117
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.
...
- 241
5
votes
2
answers
275
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 ...
- 835
7
votes
2
answers
535
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 ...
- 71
5
votes
1
answer
365
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 ...
- 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 ...
- 61
1
vote
4
answers
287
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 ...
- 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 ...
- 4,496
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....
- 119
47
votes
9
answers
259k
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 ...
- 3,743
2
votes
1
answer
390
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. ...
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. ...
- 131
7
votes
1
answer
373
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 ...
- 25.2k
6
votes
6
answers
944
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 ...