4 ms·
Why do you need 5 savings accounts?
by chirau 4y ago
Why do you need 5 savings accounts?
- wara23arish 4y agoThe US only insured accounts up to 250K so its common to split up accounts for that reason. what a great problem to have
- tdhoot 4y agoIt's only $250K per account category per bank. So 5 savings accounts would only get $250K in coverage in total.
- vineyardmike 4y agoThat isn't how that works. Its $250k per account type, per institution. So 5 savings accounts at the same institution doesn't increase your insurance over 1. Some banks will "sweep" the excess funds into partner banks (which would increase protection).
- wara23arish 4y agoGotcha that makes sense.
- danuker 4y agoOuch @ inflation
- FastEatSlow 4y agoWere the Canadian banks using US insurance?
- jmalicki 4y agoNot sure exactly what is meant, but if this includes Certificates of Deposit, CD laddering was a frequent thing when interest rates were high enough to be worthwhile, where you'd want long-term CDs for the highest interest rates, but wan t to get the point of having some fraction of your CDs expire every month so you have liquidity, so you might have 60 5-yr CDs for instance, and somewhat less while you're working your way up to that