FDIC rules?

[LouAvul]

They insure funds at bank 'A' for up to $500,000 for a husband and wife. I assume that's for $500k total funds the couple have at that bank?

$200k money market. $200k CDs. $100k other.

Or, is it $500k per account?

Also, do they insure different banks for the same couple? 500k bank 'A.' Another 500k bank 'B.' Etc.

Thanks.

[Dilbert San Diego]

Also, what about business bank accounts?

I’ve worked for some medium sized businesses, which at any given time, can have a bank balance of over $1 million. One bigger company I’ve worked for generally had over $10 million in the bank. Are business funds insured up to those balances?

[Tell It Right]

It's not $500K per account at one bank. It's $500K total at the bank across all accounts at the same bank. If you want more than $500K insured you have to put no more than $500K at one bank, and no more than $500K at another bank, etc.

What I don't know is if the $500K for a married couple is $250K per person (half in the husband's name and half in the wife's name), or if having both names on the account makes it insured for twice the $250K.

[C210N]

Don’t know...

However, on the topic, I’ll throw this out: The FDIC itself is not insured against loss of the fiat dollar.

The only thing the FDIC can do is re-imburse with fiat FDC printed ‘dollars’.

The FED is going down, and along with it will be the FDIC.

YMMV.

[KarlInOhio]

https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/ answers all that and more, along with giving a lot of examples. One thing I did notice was that naming survivors on the account makes it a trust account which shuffles the rules even more. My advice: multiple banks before you hit $250k.

[Rusty0604]

When I was working i had to break up accounts in different types of accounts at different banks.

[ConservativeMind]

It's $250,000 per account, but your bank should work with other banks to spread your deposit across them, to get you fully covered.

Q: How much deposit insurance coverage do I qualify for?

A: The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category.

https://www.fdic.gov/resources/deposit-insurance/faq/

[Presbyterian Reporter]

If you happen to have a lot of cash, then the best solution is to open an account at two or more banks.

Same thing with brokerage accounts. FINRA insures accounts to $500,000. So if you have a lot of money, open up accounts with two or more brokerage firms.

[Cboldt]

The so-called “sticker principle.” FDIC is designed to protect people who give money to mismanaged banks. If too many or too big of bank run, the “insurance” disappears by scraping the sticker off the window.

I can’t recall a time a big bank was allowed to fail. Small locals fail all the time.

[Rusty0604]

Financial Institution Employee’s Guide to Deposit Insurance

https://www.fdic.gov/deposit/diguidebankers/joint-accounts.html

[ConservativeMind]

You can also keep your money at a place like Fidelity in a Cash Management Account (free, there), and they will spool out your money to all the banks needed to keep it insured.

https://thecollegeinvestor.com/24307/fdic-insurance-deposit-limits/

[aMorePerfectUnion]

Have you considered your loss of purchasing power by keepin that much in a bank??

[TexasGator]

Best place to find out is to visit the bank.

[NEMDF]

I think it is $250,000 per PERSON, so it would somewhat depend on how things are titled, and how much is in each account or instrument.

[Tell It Right]

"Have you considered your loss of purchasing power by keepin that much in a bank??"

This wasn't stated, but I took from the timing of the post to be about moving money out of investments into a safe place until the stock market quits crashing, then moving back into investments.

I've been out of equities since Brandon entered the WH. Last year that looked like a stupid move. This year I've breathed a lot smoother than most people.

[Vermont Lt]

$250k per person per bank.

A corporation is considered “a person.” A DBA account is not.

If you have more than that it’s best to spread it around if your primary bank is a smaller local bank. Something like a BOA isn’t going to go belly up. If it does…we have bigger issues.

[ConservativeInPA]

Same thing with brokerage accounts. FINRA insures accounts to $500,000. So if you have a lot of money, open up accounts with two or more brokerage firms.

^ This ^

It doesn't need to be invested in the stock market.

[rottweiller_inc]

Of course it doesn’t matter that much if inflation is so bad it cost 500,000 to buy a loaf of bread

[LouAvul]

You trust Fidelity? Are their CD rates the same as everybody else?

[ConservativeMind]

We have a number of accounts with Fidelity, all free for what we have.

CD information and more are apparently here:

https://www.fidelity.com/fixed-income-bonds/cds