This is a timely thread for me, thanks OP for starting it. Question. What is the limit for brokerage accounts and retirement accounts. I have a ROTH and IRA at the same brokerage worth 1.6 million and wondering if I need to move some to a different brokerage. I know, a good nightmare scenario to have, but now that I am officially retired, I have started thinking about this.

Anonymous wrote: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.

Smart. That takes away the hassle of having multiple accounts at different banks to stay under the 250k limit.

Anonymous wrote:You can do $750k at your current bank easily: one account in DH's name, one in DW's name, one joint account. Each qualifies for $250k.

But I'd just use other banks too, to be on the safe side. Not necessarily bank failure concerns, but other annoyanes like the bank temporarily putting a fraud hold on your account while they investigate some issue.

Wrong. The coverage is 250k per depositor at a bank. Not per bank account at a single bank. If you go to a different bank, then the deposit insurance coverage up to 250k per depositor starts again.
https://www.fdic.gov/deposit-insurance/your-insured-deposits-brochure-english.pdf

Anonymous wrote:Imagine USAA failing - all those military families affected. Political nightmare.

Seems like there’s no evidence of will fail other than a poster complaining it takes a while on the phone with them. And even if it does fail, that’s why FDIC exists-up to 250k per person is covered in depositor per bank.

Imagine USAA failing - all those military families affected. Political nightmare.

You can do $750k at your current bank easily: one account in DH's name, one in DW's name, one joint account. Each qualifies for $250k.

But I'd just use other banks too, to be on the safe side. Not necessarily bank failure concerns, but other annoyanes like the bank temporarily putting a fraud hold on your account while they investigate some issue.

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.

How often do you need to call your bank? For me, it’s like once every 10 years…

You also have the right of offset if a bank were to fail. So if you have funds in the same bank that you owe debt and the bank fails you can offset deposits over the fdic limit from any loan balances that you have.

This page is helpful: https://investor.vanguard.com/investment-products/cash-investments

We put money for things like a down payment in a money market fund like the settlement fund in your brokerage (ex. VMFXX). You could also use ETFs. Selling and then doing a wire transfer is very fast.

Good for you all. Any investment recommendations?

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.

You might not be happy with customer service but I see zero evidence they will fold. They are pretty healthy. We have m several accounts and our insurance with them.

Treasury Direct is a pita.
We cashed out.
I buy Treasuries in Vanguard.

Vanguard Cash Plus account + TreasuryDirect account to buy 3 month T-bills direct from Uncle Sam

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.

Pnc or navy federal

Open a cash management account at fidelity. Ask Etrade if their cash sweep manages cash over $250k