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If you put that kind of money in a savings account, the bank will call you twice a day until they have made you move the money into something more profitable (f
by kpil 9y ago
If you put that kind of money in a savings account, the bank will call you twice a day until they have made you move the money into something more profitable (for them.)
- WalterBright 9y agoYour bank will stop calling you if you threaten to move your account.
- WalterBright 9y agoBTW, any sane business would put their best salesmen on dealing with their wealthier clients, and those salesmen will know that haranguing customers on the phone is hardly the best way to sell them.
- uiri 9y agoActually, you might be surprised at how often a soft no means yes, in business. Of course, in one's personal life, people try not to be rude, so a soft no is often really a hard no. An athlete or doctor or lawyer who is too busy to give the salesman the time of day might be really interested but simply too busy to make time for the call. A good salesman won't give up after the first soft no. It is often the case in these situations that persistence is polite.
- deleted 9y ago[deleted]
- ChuckMcM 9y agoI would be surprised if the bank complained. They are only on the hook for $250K per the FDIC and could cover it with a low interest interbank loan from the FED. Since their mandatory reserve is only a fraction of the cash on deposit they will happily leverage it for greater returns paying you your paltry .7% while collecting much more than that.
- mobilefriendly 9y agoThis highlights the problem-- the most "conservative" approach, a savings account, is actually TERRIBLE financial advice. First the money won't keep pace with inflation and second a bank failure will wipe out the fortune. That happened to savers in 2008, most notably the failure of IndyMac.
- WalterBright 9y agoOf course. But you have to park the money somewhere while you learn about where to invest it. If you've got more than $250K, I'd split it up into multiple accounts at different banks.
- rconti 9y agoI suspect this is per depositor not per account... but I'm not sure.
- dhruvrrp 9y agoFDIC covers $250,000 for all of a persons accounts in one bank. So you just need to have accounts in separate banks to 'increase' your coverage. https://www.fdic.gov/deposit/covered/categories.html https://www.fdic.gov/deposit/covered/categories.html
- dandandan 9y agoIt's per account and can be doubled with a "payable on death" designee.
- mysterypie 9y ago> It's per account I think you're mistaken about the first part of your statement: The FDIC says, "All single accounts owned by the same person at the same bank are added together and insured up to $250,000." (see https://www.fdic.gov/deposit/covered/categories.html https://www.fdic.gov/deposit/covered/categories.html ) But you are correct that it can be doubled, tripled, quadrupled, or even greater by opening different account types such as a Retirement Account, a Joint Account, a Revocable Trust Account, etc., at the same bank since each account type seems to get separate treatment (according to the same FDIC link).