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Why hasn't SVB offered to split people's accounts into multiple accounts capped at $250K each? This would be a win for everyone, correct? The cash is guaranteed
by diebeforei485 4y ago
Why hasn't SVB offered to split people's accounts into multiple accounts capped at $250K each? This would be a win for everyone, correct? The cash is guaranteed, companies don't need to waste their time migrating a new bank, and SVB doesn't have to worry about their fractional reserve.
- synu 4y agoInsurance is per depositor, not per account number.
- mbreese 4y agoIIRC, that's not how the FDIC capping works. It's a unique((account_owner, account_type)) operation, not just by total number of accounts. The "account_owner" can get a little creative, but by and large, just splitting accounts won't work.
- claytongulick 4y agoFDIC convers a single person per account type up to 250k, not per account. If it were easy to get around the rule, why have a limit at all? Folks who de-risk by staying within the FDIC limit do it by splitting their money between multiple financial institutions.
- graderjs 4y agoThat would be a "hack" akin to inventing money or creating endless liabilities for FDIC. That's obviously--to me--not how this is going to work! :) xx ;p