Questions tagged [fdic]

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43
votes
7answers
210k 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 ...
15
votes
5answers
41k 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 ...
8
votes
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
votes
1answer
336 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 ...
6
votes
6answers
898 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 ...
6
votes
4answers
418 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 ...
6
votes
4answers
883 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 ...
6
votes
2answers
451 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 ...
5
votes
4answers
7k 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 ...
5
votes
2answers
236 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 ...
5
votes
1answer
299 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 ...
3
votes
2answers
967 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,...
3
votes
3answers
111 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
votes
1answer
237 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. ...
2
votes
1answer
326 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. ...
2
votes
0answers
83 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
vote
1answer
123 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 ...
1
vote
1answer
90 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 ...
1
vote
1answer
126 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 ...
1
vote
1answer
45 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" ...
1
vote
4answers
240 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 ...
1
vote
0answers
200 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
0answers
76 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. ...
0
votes
2answers
68 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?