4 ms·

Turns out Twitter making bank failure a meme didn’t really help anything at all. It’ll be very interesting to see what happens to uninsured depositors

albatross13 4y ago
Probably a dumb question, but what determines if a deposit is insured or not at an FDIC insured bank?
- ncallaway 4y ago
  Deposits > $250k per depositor per bank are uninsured. https://www.fdic.gov/resources/deposit-insurance/faq/ https://www.fdic.gov/resources/deposit-insurance/faq/
- bagels 4y ago
  Up to 250k is insured, amounts beyond that are not.
- swift532 4y ago
  Not a dumb question at all. AFAIK it is the amount, in the USA it's $250K. Other countries have similar situations, most of the EU is 100K €.
  - albatross13 4y ago
    Awesome, that makes sense. Thanks!
- abofh 4y ago
  Investment products are not FDIC insured; Accounts over 250k are not FDIC insured; In this case, that's probably the bulk of 'uninsured' - large accounts, or creatively sold investment products.
  - bombcar 4y ago
    Investment products can (and often are) FINRA and SIPC insured - but this is NOT an insurance against loss (FDIC doesn't insure your interest, just the principal which changes each time interest is paid, the moment FDIC steps in your interest-earning can go to zero) - it is insurance that you actually own what the investment says it is. So if you buy stock via Vanguard, and Vanguard mismanages itself into death, you still own the stock and eventually it'll be at another broker.
- ramses0 4y ago
  * Amount less than $250k * "Deposit Account" => not a "fancy investment interest account" Details: https://www.fdic.gov/resources/deposit-insurance/ https://www.fdic.gov/resources/deposit-insurance/ Not Covered: https://www.fdic.gov/resources/deposit-insurance/financial-products-not-insured/ https://www.fdic.gov/resources/deposit-insurance/financial-p...
- zeitgeistcowboy 4y ago
  I'm not sure if this helps answer your question, but coverage is automatic if you have your funds in an FDIC insurance bank (most all of them) and if it's in a normal savings type account and then any amount 250k or less.
- deleted 4y ago
  [deleted]
ofchnofc 4y ago
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albatross13 4y ago

Probably a dumb question, but what determines if a deposit is insured or not at an FDIC insured bank?

ncallaway 4y ago
Deposits > $250k per depositor per bank are uninsured. https://www.fdic.gov/resources/deposit-insurance/faq/ https://www.fdic.gov/resources/deposit-insurance/faq/
bagels 4y ago
Up to 250k is insured, amounts beyond that are not.
swift532 4y ago
Not a dumb question at all. AFAIK it is the amount, in the USA it's $250K. Other countries have similar situations, most of the EU is 100K €.
- albatross13 4y ago
  Awesome, that makes sense. Thanks!
abofh 4y ago
Investment products are not FDIC insured; Accounts over 250k are not FDIC insured; In this case, that's probably the bulk of 'uninsured' - large accounts, or creatively sold investment products.
- bombcar 4y ago
  Investment products can (and often are) FINRA and SIPC insured - but this is NOT an insurance against loss (FDIC doesn't insure your interest, just the principal which changes each time interest is paid, the moment FDIC steps in your interest-earning can go to zero) - it is insurance that you actually own what the investment says it is. So if you buy stock via Vanguard, and Vanguard mismanages itself into death, you still own the stock and eventually it'll be at another broker.
ramses0 4y ago
* Amount less than $250k * "Deposit Account" => not a "fancy investment interest account" Details: https://www.fdic.gov/resources/deposit-insurance/ https://www.fdic.gov/resources/deposit-insurance/ Not Covered: https://www.fdic.gov/resources/deposit-insurance/financial-products-not-insured/ https://www.fdic.gov/resources/deposit-insurance/financial-p...
zeitgeistcowboy 4y ago
I'm not sure if this helps answer your question, but coverage is automatic if you have your funds in an FDIC insurance bank (most all of them) and if it's in a normal savings type account and then any amount 250k or less.
deleted 4y ago
[deleted]

ofchnofc 4y ago

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