Someone with a lot of cash can obtain private insurance more cheaply than the cost of managing deposits in dozens of banks. Multiple deposit locations are more

Someone with a lot of cash can obtain private insurance more cheaply than the cost of managing deposits in dozens of banks. Multiple deposit locations are more of a convenience and a relationship building approach. You do see some people try to “game” FDIC/NCUA with $249k in each bank but they are generally either eccentrics or elderly people who only invest simply and are afraid of disasters. It’s up to the bank to do loan and fee business proportionately to their deposits and these kinds of accounts are factored in. No harm done.