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I'm not in the enviable position of needing to allocate huge multiples of the FDIC limit, but this has been a learning experience. I knew that for individuals,

I'm not in the enviable position of needing to allocate huge multiples of the FDIC limit, but this has been a learning experience. I knew that for individuals, you could use the FDIC limit multiple times, by having joint/single accounts at the same bank. I now know that does NOT apply to business accounts. I will likely open accounts with a couple banks in the coming months, so that I can shuffle things around if needed. I was already looking at ways to get higher yields, and I guess I will diversify while I'm at it. I'd be curious to know what folks are doing who have to manage 10-20x the FDIC limit. Seems like we're all now on notice that bank runs are a thing, and it would be irresponsible to put all your eggs in one basket.

andrewfromx 4y ago
there is https://en.wikipedia.org/wiki/Certificate_of_Deposit_Account_Registry_Service https://en.wikipedia.org/wiki/Certificate_of_Deposit_Account... "The Certificate of Deposit Account Registry Service (CDARS), was a US for-profit service that broke up large deposits (from individuals, companies, nonprofits, public funds, etc.) and placed them across a network of more than 3000 banks and savings associations around the United States. This allowed depositors to deal with a single bank that participates in CDARS but avoid having funds above the Federal Deposit Insurance Corporation (FDIC) deposit insurance limits in any one bank."
- dstala 4y ago
  CDARS : This was something that I was searching for. Any idea about their fee structure? How much does their service cost?
  - andrewfromx 4y ago
    You get lower rates for sure and I think you have to agree to lock up the money in 1, 5, or 10 year CDs. When I looked into it I found just using banks like https://www.emigrantdirect.com https://www.emigrantdirect.com https://www.capitalone.com https://www.capitalone.com savings got you a better rate and no lock up required. But you have to do the 250k chunks yourself.

andrewfromx 4y ago

there is https://en.wikipedia.org/wiki/Certificate_of_Deposit_Account_Registry_Service https://en.wikipedia.org/wiki/Certificate_of_Deposit_Account... "The Certificate of Deposit Account Registry Service (CDARS), was a US for-profit service that broke up large deposits (from individuals, companies, nonprofits, public funds, etc.) and placed them across a network of more than 3000 banks and savings associations around the United States. This allowed depositors to deal with a single bank that participates in CDARS but avoid having funds above the Federal Deposit Insurance Corporation (FDIC) deposit insurance limits in any one bank."

dstala 4y ago
CDARS : This was something that I was searching for. Any idea about their fee structure? How much does their service cost?
- andrewfromx 4y ago
  You get lower rates for sure and I think you have to agree to lock up the money in 1, 5, or 10 year CDs. When I looked into it I found just using banks like https://www.emigrantdirect.com https://www.emigrantdirect.com https://www.capitalone.com https://www.capitalone.com savings got you a better rate and no lock up required. But you have to do the 250k chunks yourself.