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recently had a call with Fidelity about this. many places including Fidelity will automatically split your cash between many banks on the bank end. for Fidelity
by forsakenTadpole 4y ago
recently had a call with Fidelity about this. many places including Fidelity will automatically split your cash between many banks on the bank end. for Fidelity the money in my Cash Management account will be split into up to 20 different banks which means that up to $5 million is FDIC insured. https://www.fidelity.com/why-fidelity/safeguarding-your-accounts https://www.fidelity.com/why-fidelity/safeguarding-your-acco...
- jnwatson 4y agoIt seems like a hack that really should be built into the system. It is insurance only for those in-the-know.
- ericpauley 4y agoThe idea is that if you're keeping 250k+ in cash sitting around you should probably be in-the-know. Deposit sweep accounts are incredibly easy to use, Fidelity lets you open one in ~5 minutes. Further, this isn't just some hack, as distributing funds around many banks makes each individual bank less brittle.
- ted_dunning 4y agoThat is the point of having a competent CFO. The letters "CFO" are pronounced "those in the know". Doing a cash sweep is NOT rocket science and there are lots of services that can do it for you. A company can also project forward and ladder treasury instruments to mature at the right times to provide liquidity. T-{notes,bills,bonds} are issued by the US government and thus have at least as much resiliency as the SDIC.