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Fidelity has a program where they will insure up to 1.2M USD in FDIC insured cash: https://www.fidelity.com/why-fidelity/safeguarding-your-accounts https://www.

by zie 4y ago

Fidelity has a program where they will insure up to 1.2M USD in FDIC insured cash: https://www.fidelity.com/why-fidelity/safeguarding-your-accounts https://www.fidelity.com/why-fidelity/safeguarding-your-acco... Otherwise I'd recommend reading from the source: https://www.fdic.gov/resources/deposit-insurance/ https://www.fdic.gov/resources/deposit-insurance/ as there are lots of weirdness as one should expect from old complicated insurance systems ;) But really, if you have more than $250k in cash, perhaps you should consider lowering your cash amounts. Certainly there are valid reasons to hold that much cash, but in general, most people probably shouldn't. If you put that cash in treasuries(even very short term treasuries so it's very cash like), you get paid interest for holding the bills, where most banks won't pay you much of anything for holding cash and treasuries are backed 100% by the US govt, unlike FDIC's 250k limit.

O__________O 4y ago
Lots of banks offer services like these; for example, IntraFi Network Deposits, which is mentioned in the article has more than 3000 members, which is more than 50% of US banks, since there are less than 5000 commercial banks in the US.
A4ET8a8uTh0 4y ago
I think this is one of those rare opportunities that I can add something useful to the discussion based on knowledge rather than just my opinion. Some banks are structured in a rather specific way, which allow them to have some rather unique products ( compared to the regular banking that is ). For example, certain IL bank has a fair amount of charters, which effectively allows them to offer deposit product that goes way over 250k ( at its core, it is basically CDARS though ). 2.5m if I remember right based on the amount of charters. << But really, if you have more than $250k in cash, perhaps you should consider lowering your cash amounts. Certainly there are valid reasons to hold that much cash, but in general, most people probably shouldn't. I This argument has been going on forever and will likely continue for as long as human race exists. There are reasons one should and shouldn't do this, but the reality is that it will heavily depend on individual situation and, I assume, such a person will be sensible enough to ask someone/s that can appropriately advise whether it makes sense for that individual case.
- zie 4y ago
  I wasn't trying to say Fidelity was the only game in town that will automatically manage the FDIC insurance process for you. One bonus for Fidelity, their program has been around a while and they manage more money than the US Govt spends in a year, so they have definitely grown into the, to big to let fail category. I agree with your perspective.
rtp4me 4y ago
Slightly tangental, Fidelity also has the option to put your accounts in "lock down" mode to prevent funding *outflows* (even transfers between accounts). This can help secure your account in addition to 2FA. I learned about this recently after +10yrs at Fidelity. Sadly, I don't think it is enabled by default. I wish my bank had the same sort of option to prevent someone from just randomly guessing my account number for an ACH transfer.
- synergy20 4y ago
  this will not work if someone broke into your account already, or stole your identity and disguised as you, the first thing they do is to unlock it. Fidelity should have some push-to-apps login approach, I'm not sure if it has one yet.
  - fbdab103 4y ago
    Hijacked account is different than what GP is describing.
- fbdab103 4y ago
  This is exactly what I have wanted for a long time! I need to keep some amount of cash reasonably liquid (3-10 day retrieval process would be fine), but hate it sitting around, seemingly with no way to require the bank to mandate that it is really me making the withdrawal request. Edit: Random internet poster did some testing (https://www.bogleheads.org/forum/viewtopic.php?t=382555 https://www.bogleheads.org/forum/viewtopic.php?t=382555) and found that the Fidelity Lockdown Mode will block ACATS pulls, but not ACH. Better than nothing, though still not what I want: money goes in, money does not come out until I sign something in blood.
  - Fatnino 4y ago
    Actual cash in a deposit box at the bank?
- heartbreak 4y ago
  I think most banks have this if you talk to an appropriate rep. I have “insert only” accounts at multiple banks.
neilv 4y ago
Fidelity also offers an alternative, to its automated FDIC-insured deposit sweep, of keeping a brokerage/retirement account's cash in SPAXX, which is currently yielding 4.22%. (Both options are mostly transparent to the UX, and happen automatically -- you normally only see the dollar total, and a monthly interest/dividend transactions.) SPAXX is riskier than FDIC-insured sweep, but I don't know how much riskier. Rates for the FDIC-insured and SPAXX: https://accountopening.fidelity.com/ftgw/aong/aongapp/interestRates?type=fcma https://accountopening.fidelity.com/ftgw/aong/aongapp/intere...
- ochoseis 4y ago
  Thanks for the tip. I’m at Schwab and it appears they have a rough equivalent called SWVXX. I’ve been considering going more into CD/bond ladders for the rates lately, but it sure would be nice to have the flexibility to pull money out whenever.
  - ghaff 4y ago
    I looked into this sort of thing a while back. And, while I have bonds including tax exempt ones, I came to the conclusion that it made sense to keep a 10% or so holding in my brokerage's sweep fund. The difference between that and messing with CDs and high grade bonds just wasn't that much. I series bonds from TreasuryDirect probably do make sense at the moment but you can only invest relatively modest amounts.
    - ochoseis 4y ago
      Every month I put enough to buy groceries into Series I bonds, with the thought that no matter what they should still be worth that much when they mature. Probably better ways to achieve that, but it is simple.
      - ghaff 4y ago
        As a super-safe simple probably don't need to access for a few years but could if I had to investment, I series bonds make a lot of sense to me as part of a portfolio.
crushingk 4y ago
Right now, there are checking accounts, savings accounts, CDs, and money market accounts (all of which are deposit accounts) paying 5%.
- zamnos 4y ago
  Not that I don't believe you, but you mind linking some? the best I could find was wealthfront cash, which is isn't a savings account but is giving 4.05% apy. Which is pretty good, but inflation's up at like 6.5%, so it's still a bit of a net loss
  - neilv 4y ago
    I see 4.55% APY: https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/ https://www.bankrate.com/banking/savings/best-high-yield-int... Fidelity SPAXX currently at 4.22% is close enough for me, because you get all the other Fidelity features.
    - daydream 4y ago
      Fidelity FZDXX money market fund 7-day SEC yield is 4.46%. Minimum $100k initial investment.
  - Rebelgecko 4y ago
    Some banks do it as a short term loss leader to acquire new customers. Eg Primus bank recently offered 5% interest, then after a month or two their rate fell back down to treasury APRs
  - crushingk 4y ago
    Some are listed here: https://www.marketwatch.com/picks/these-8-financial-institutions-are-now-paying-a-guaranteed-5-or-more-on-their-cds-or-high-yield-savings-accounts-a8fd058d https://www.marketwatch.com/picks/these-8-financial-institut... I typically check the top rates for savings, checking, and CDs each week. Deals can appear then disappear quickly. The best rates often have restrictions, but not always.
  - 4y ago
graderjs 4y ago
The real pro move would have been to create a Stripe payment link for your entire balance (and hit it as many times as you need to up the Stripe transaction maximum), and use your corporate SVB card to pay it all into your Stripe account. That way you don't have to use the bank wire facility, but can use the card networks. I'm not sure that actually "works" in a situation like this. But it sounds good on paper I think.

by zie 4y ago

O__________O 4y ago

Lots of banks offer services like these; for example, IntraFi Network Deposits, which is mentioned in the article has more than 3000 members, which is more than 50% of US banks, since there are less than 5000 commercial banks in the US.

A4ET8a8uTh0 4y ago

I think this is one of those rare opportunities that I can add something useful to the discussion based on knowledge rather than just my opinion. Some banks are structured in a rather specific way, which allow them to have some rather unique products ( compared to the regular banking that is ). For example, certain IL bank has a fair amount of charters, which effectively allows them to offer deposit product that goes way over 250k ( at its core, it is basically CDARS though ). 2.5m if I remember right based on the amount of charters. << But really, if you have more than $250k in cash, perhaps you should consider lowering your cash amounts. Certainly there are valid reasons to hold that much cash, but in general, most people probably shouldn't. I This argument has been going on forever and will likely continue for as long as human race exists. There are reasons one should and shouldn't do this, but the reality is that it will heavily depend on individual situation and, I assume, such a person will be sensible enough to ask someone/s that can appropriately advise whether it makes sense for that individual case.

zie 4y ago
I wasn't trying to say Fidelity was the only game in town that will automatically manage the FDIC insurance process for you. One bonus for Fidelity, their program has been around a while and they manage more money than the US Govt spends in a year, so they have definitely grown into the, to big to let fail category. I agree with your perspective.

rtp4me 4y ago

Slightly tangental, Fidelity also has the option to put your accounts in "lock down" mode to prevent funding *outflows* (even transfers between accounts). This can help secure your account in addition to 2FA. I learned about this recently after +10yrs at Fidelity. Sadly, I don't think it is enabled by default. I wish my bank had the same sort of option to prevent someone from just randomly guessing my account number for an ACH transfer.

synergy20 4y ago
this will not work if someone broke into your account already, or stole your identity and disguised as you, the first thing they do is to unlock it. Fidelity should have some push-to-apps login approach, I'm not sure if it has one yet.
- fbdab103 4y ago
  Hijacked account is different than what GP is describing.
fbdab103 4y ago
This is exactly what I have wanted for a long time! I need to keep some amount of cash reasonably liquid (3-10 day retrieval process would be fine), but hate it sitting around, seemingly with no way to require the bank to mandate that it is really me making the withdrawal request. Edit: Random internet poster did some testing (https://www.bogleheads.org/forum/viewtopic.php?t=382555 https://www.bogleheads.org/forum/viewtopic.php?t=382555) and found that the Fidelity Lockdown Mode will block ACATS pulls, but not ACH. Better than nothing, though still not what I want: money goes in, money does not come out until I sign something in blood.
- Fatnino 4y ago
  Actual cash in a deposit box at the bank?
heartbreak 4y ago
I think most banks have this if you talk to an appropriate rep. I have “insert only” accounts at multiple banks.

neilv 4y ago

Fidelity also offers an alternative, to its automated FDIC-insured deposit sweep, of keeping a brokerage/retirement account's cash in SPAXX, which is currently yielding 4.22%. (Both options are mostly transparent to the UX, and happen automatically -- you normally only see the dollar total, and a monthly interest/dividend transactions.) SPAXX is riskier than FDIC-insured sweep, but I don't know how much riskier. Rates for the FDIC-insured and SPAXX: https://accountopening.fidelity.com/ftgw/aong/aongapp/interestRates?type=fcma https://accountopening.fidelity.com/ftgw/aong/aongapp/intere...

ochoseis 4y ago
Thanks for the tip. I’m at Schwab and it appears they have a rough equivalent called SWVXX. I’ve been considering going more into CD/bond ladders for the rates lately, but it sure would be nice to have the flexibility to pull money out whenever.
- ghaff 4y ago
  I looked into this sort of thing a while back. And, while I have bonds including tax exempt ones, I came to the conclusion that it made sense to keep a 10% or so holding in my brokerage's sweep fund. The difference between that and messing with CDs and high grade bonds just wasn't that much. I series bonds from TreasuryDirect probably do make sense at the moment but you can only invest relatively modest amounts.
  - ochoseis 4y ago
    Every month I put enough to buy groceries into Series I bonds, with the thought that no matter what they should still be worth that much when they mature. Probably better ways to achieve that, but it is simple.
    - ghaff 4y ago
      As a super-safe simple probably don't need to access for a few years but could if I had to investment, I series bonds make a lot of sense to me as part of a portfolio.

crushingk 4y ago

Right now, there are checking accounts, savings accounts, CDs, and money market accounts (all of which are deposit accounts) paying 5%.

zamnos 4y ago
Not that I don't believe you, but you mind linking some? the best I could find was wealthfront cash, which is isn't a savings account but is giving 4.05% apy. Which is pretty good, but inflation's up at like 6.5%, so it's still a bit of a net loss
- neilv 4y ago
  I see 4.55% APY: https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/ https://www.bankrate.com/banking/savings/best-high-yield-int... Fidelity SPAXX currently at 4.22% is close enough for me, because you get all the other Fidelity features.
  - daydream 4y ago
    Fidelity FZDXX money market fund 7-day SEC yield is 4.46%. Minimum $100k initial investment.
- Rebelgecko 4y ago
  Some banks do it as a short term loss leader to acquire new customers. Eg Primus bank recently offered 5% interest, then after a month or two their rate fell back down to treasury APRs
- crushingk 4y ago
  Some are listed here: https://www.marketwatch.com/picks/these-8-financial-institutions-are-now-paying-a-guaranteed-5-or-more-on-their-cds-or-high-yield-savings-accounts-a8fd058d https://www.marketwatch.com/picks/these-8-financial-institut... I typically check the top rates for savings, checking, and CDs each week. Deals can appear then disappear quickly. The best rates often have restrictions, but not always.
- 4y ago

graderjs 4y ago

The real pro move would have been to create a Stripe payment link for your entire balance (and hit it as many times as you need to up the Stripe transaction maximum), and use your corporate SVB card to pay it all into your Stripe account. That way you don't have to use the bank wire facility, but can use the card networks. I'm not sure that actually "works" in a situation like this. But it sounds good on paper I think.