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Could a tech company have split their accounts into separate $250k accounts? I'm not sure if the bank would offer that.
by throwing_away 4y ago
Could a tech company have split their accounts into separate $250k accounts? I'm not sure if the bank would offer that.
- x3n0ph3n3 4y agoNo, FDIC insurance applies to account owners, not accounts. Fun fact, if you're married, you can actually turn that into 3 * FDIC insurance limit. - Account 1: You - Account 2: Your spouse - Account 3: Jointly you and your spouse
- paulclinger 4y agoEven more: single, joint, retirement, revocable and irrevocable trust accounts all fall into different categories and are insured independently for each account owner in each bank (the joint account is 250k for all co-owners): https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/ https://www.fdic.gov/resources/deposit-insurance/financial-p...
- edulix 4y agoOr you could hold short-term t-bills for any extra money over the FDIC insurance limit. Then you are good unless the US Gov goes bankrupt, which is a non-zero risk but much lower and different.
- tome 4y agoYes, I don’t understand what systemic forces are making this not the standard practice.
- phone8675309 4y agoSVB and its depositors most likely felt that SVB was too big to fail and that the government would just bail them out
- quesera 4y agoYou'd need to split across multiple banks. This can be done manually, with some logistical challenges. This can also be done automatically, e.g. via CDARS.