Safely Banking Cash

[Anonymous]

Given that FDIC limit is $250k (and not
sure if that’s per bank or per account), if you need to hold $500k-$1m liquid for a home purchase down payment in next year, how do you safely park your cash?

[Anonymous]

Replying to add we currently use USAA and are concerned they could fold. We are also looking for a new bank for regular savings and checking that has a responsive customer service center you can message or call without waiting 45 minutes. USAA has moved to a “chat” model versus messaging which is a nightmare.

[Anonymous]

Just open up another bank account with another bank if you are worried. Use bankrate.com or a simlar site to see which bank on their list (that you trust) has good rates. Just beware some are "intro" rates so read the fine print.

[Anonymous]

Fidelity claims to have a workaround, but by all means do your own research: https://www.fidelity.com/why-fidelity/safeguarding-your-accounts

[Anonymous]

I think Vanguard’s cash plus account also claims FDIC insurance over $1 million but I’d just put it in money market probably.

[Anonymous]

I started Vanguard cash plus. They split your money among up to 6 banks. I checked and told them not to use my current bank.

[Anonymous]

I would have multiple accounts at different banks funded to the limit (or just below so that there's room to accrue gains).

[Anonymous]

Can someone give answer or link to is it per account or bank? That is, if we have a joint checking account, that's $500k insured. But can we have 2 more joint accounts each insured to $500k or is that TOTAL in that bank?

[Anonymous]

Open am account in another county

[Anonymous]

Limit is per bank.

[Anonymous]

Vanguard is giving only 3.1% right now. I put all on settlement fund giving 3.7

[Anonymous]

Anonymous wrote:Given that FDIC limit is $250k (and not
sure if that’s per bank or per account), if you need to hold $500k-$1m liquid for a home purchase down payment in next year, how do you safely park your cash?

SGOV

[Anonymous]

You open different accounts at different banks so none of them reach the 250k limit.

[Anonymous]

Within a single bank you can open up different types of accounts to increase the amount that is insured.

Checking/Savings
Joint
401K
IRA
Municipal Bonds
as examples.

[Anonymous]

Anonymous wrote:Replying to add we currently use USAA and are concerned they could fold. We are also looking for a new bank for regular savings and checking that has a responsive customer service center you can message or call without waiting 45 minutes. USAA has moved to a “chat” model versus messaging which is a nightmare.

Do you have any information that they might fold, besides it taking 45 minutes to wait for a rep, or them using the chat model?