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Don't split into accounts at a $250k limit, but have 2 accounts with working capital in different banks. This is the same principle as having servers in 2 diff
by pclmulqdq 4y ago
Don't split into accounts at a $250k limit, but have 2 accounts with working capital in different banks. This is the same principle as having servers in 2 different datacenters.
SVB's clients will not lose all their money - their assets can cover most of it. You mostly just need the second bank to cover the period in which you may not be able to access your money.
- frollo 4y agoHeck, I don't think I'd manage to have $250k in liquidity in my whole life and this is my standard operating procedure for my money. You never know when some weird, once-in-a-lifetime stuff is going to hit your bank. Learned the lesson the hard way when I ended up stranded in the middle of nowhere without a working debit card for a damned IT outage.
- pclmulqdq 4y agoYeah, this is why my personal money is split between 4 banks, I make sure to have Visa and Mastercard, etc. I have seen bank computer outages, fraud, and other stupid shit that shuts part of the system down, and I want my money to be highly available. There should be no reason not to run a company the same way.
- acjacobson 4y agoI do this too. I've been locked out of a bank account for a week or so because something in their system flagged a review. A tiny blip like that can be really impactful on handling day to day expenses - it makes sense to have a backup.