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If the Bank is federally insured, it's not a problem that the bank won't be able to make it work. That's why generally speaking bank runs only happen on uninsur
by cjensen 4y ago
If the Bank is federally insured, it's not a problem that the bank won't be able to make it work. That's why generally speaking bank runs only happen on uninsured banks in the US. SVB is not, as far as I can see, insured and should definitely be careful in their choice of words.
- mikesun 4y agoFDIC only insures up to $250K
- johnbellone 4y agoPer account. Edit: It seems I am incorrect. > The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank.
- notyourday 4y ago> Per account. Per account "type" and structure. For DDAs if you are married it will be: You: $250k Your+your wife: $250k You POD your wife : $250k Your wife: $250k Your wife POD you: $250k
- jfim 4y agoWhat's POD in this context?
- htrp 4y agoPayable on Death...
- notyourday 4y agoWhat @htrp said - payable on death.
- ryan_j_naughton 4y agoDDAs?
- notyourday 4y agoDemand Deposit Account - the kind of account that allows for cleared funds to be withdrawn without advanced notice. Probably 99.999% of accounts such as checking and savings one can write checks/do ACH payments/send wires/transfer money from fall into this category.
- TMWNN 4y ago>The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category My understanding is that this might cause an unwelcome surprise to (for example) someone with a personal account at Bank A, and a sweep account at Brokerage P that sends its funds into accounts at Banks A, B, and C.
- mikeiz404 4y agoThat’s true however there is a limit. > The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. [1] 1: https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/ https://www.fdic.gov/resources/deposit-insurance/brochures/d...
- toast0 4y agoThey've got an FDIC page, https://www.svb.com/fdic https://www.svb.com/fdic, and they show up in the FDIC bank finder https://banks.data.fdic.gov/bankfind-suite/bankfind/details/24735 https://banks.data.fdic.gov/bankfind-suite/bankfind/details/... Although the Assets, Liabilities, and Capital reporting available if you click "create financial reports for this institution" estimates 5.69% of deposits are insured. Is a corporate account limited to $250K of deposit insurance? If so, I imagine many of them may have much more than that, and the reporting does show almost 75% of the deposits are in accounts with greater than $250K, assuming I'm reading the report correctly.
- silisili 4y agoHow do you mean? SVB is FDIC insured - https://banks.data.fdic.gov/bankfind-suite/bankfind/details/24735 https://banks.data.fdic.gov/bankfind-suite/bankfind/details/...
- deleted 4y ago[deleted]
- anon291 4y agoFDIC insurance is worthless for companies, as most would need more than $250k monthly just to make payroll.
- tempsy 4y agoYou’re kidding right? There’s a limit of like $250k An individual could easily have that much let alone a startup with millions.
- deleted 4y ago[deleted]
- bluGill 4y agoIn a bank? If you have that much you really should invest in something better than a bank account. Banks should be petty cash that you spend in a couple months.
- tempsy 4y agoi’m not talking about what the savvy thing to do is, just taking issue with the assertion that “it doesn’t matter if a bank fails cause it’s insured” when there’s a limit that the OP either failed to mention or didn’t know about and not that it matters but this is specifically about a startup or business not talking about personal finances of an individual
- kapilvt 4y agoThat’s not quite how payroll works
- bluGill 4y agoRight, but gp was talking about people not businesses
- tempsy 4y agono i wasn’t. i said an individual could easily have $250k in cash to show you that it is not a significant amount of money from a business perspective. nothing about what i said referred to keeping $250k in a non interest bearing account as being a smart decision for an individual
- FormerBandmate 4y agoWashington Mutual and Wachovia were both insured
- kasey_junk 4y agoWashington Mutual and Wachovia were both taken over without touching the FDIC insurance funds.