If savings account are only FDIC insured to $250K do you need to open another account?
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Anonymous
| Since each account is only insured to $250K do you just keep opening new savings accounts? |
Anonymous
| If the account is joint, don’t you and spouse both have $250k protection? IDK, but have been meaning to look this up. |
Anonymous
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The rules are complicated. Opening two individually owned accounts at the same bank will not increase your coverage, but doing the same at two different FDIC insured banks will. That is assuming that the banks are really independent and not owned by the same parent.
Opening a individually owned account and a joint account will up your coverage. Opening another joint account with a different person will not up your coverage. Opening a trust account ups your coverage, but opening a second one does not. Going to a second bank, does. |
Anonymous
| Get a cash management account. The money gets swept to as many banks as necessary. |
Anonymous
| don't you use more than one bank OP? I use CapOne, Ally, and Vanguard. You can spread your money |
Anonymous
This is pretty f**king stupid. I guess if you have tens of millions, then keep $750k in cash earning nothing. Maybe just have one account and then buy $500k of treasuries that will earn real interest. |
Anonymous
each earning 3.5%+ but i get your point. too much cash. already have money in the market and treasuries. i suppose i can buy more but having 8% in cash isn't too bad, IMHO. |
Anonymous
+1 |
Anonymous
It is if you feel the need to have three accounts. Look, I just came off dealing with an estate that was decent (around $5MM) but with 12 different accounts for no reason. Similar ridiculous thinking about needing multiple bank accounts for FDIC as well as multiple other random accounts. Do your heirs a favor and just consolidate to the fewest accounts you need. You forget who you designate as a beneficiary or worse don’t designate anyone, so now it goes through probate and what not. It all becomes a bigger pain then you appreciate. I mean, the same US government that is issuing treasuries is also standing behind FDIC insurance. You can ladder treasuries if you are concerned about having to sell at a loss…though that seems unlikely in your case. |
Anonymous
Don’t know where you live, but the treasuries are higher and avoid state tax. |
Anonymous
Well some of us do have a lot more than $750K in cash and "tens of millions". Sure I could put it all in the market, but I have enough in the market to live the next 20+ years off of. And I have enough in cash/cash alternatives to live off of for 25+ years and never touch the principal. So yeah, I keep a portion in cash as I don't need the risk associated with the market. And yes, my Financial advisor manages it so we have FDIC/NCUA protection. |
Anonymous
| Who keeps that much cash around? I don't see the rich doing it and the poor definitely shouldn't do it. |
Anonymous
Then you aren’t living the last Great Depression and opening up multiple bank accounts…if you are then you are a dumb f**k. There is no market risk associated with treasuries if you hold to maturity and you can ladder them so some are maturing every year or every 6 months or every month if you want. You do know it’s the same government backstopping treasuries as FDIC insurance, right? I assume your financial advisor is doing what you request of him. |
Anonymous
Mad poor man |
Anonymous
We use muni bonds, CD ladders, etc. It’s not just sitting in a bank. |