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The government only insures up to $250k. Beyond that, the bank is a lot riskier place to store money than the US Treasury. Maybe you could get four bank account

by drcube 11y ago

The government only insures up to $250k. Beyond that, the bank is a lot riskier place to store money than the US Treasury. Maybe you could get four bank accounts if you have $1M, but what if you have $250 million, or a billion? In other words, this is for rich people.

jonknee 11y ago
> In other words, this is for rich people. Or corporations, or pension funds, or mutual funds, or whoever needs to park a lot of cash for a short amount of time. If your $20b pension fund wants to keep a 5% cash position they need to store that $1b somewhere and it would be a risk to keep it in a bank account (the bank may default).