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> Also FDIC limit is theoretically a lifetime limit per individual. As far as I know that is not true. Why do you say that? FDIC limits are applied per bank, p

> Also FDIC limit is theoretically a lifetime limit per individual. As far as I know that is not true. Why do you say that? FDIC limits are applied per bank, per individual, per account type, but there is no individual lifetime limit, and a common "cash management" account technique is to distribute your money to multiple banks so you can take advantage of each bank's limit.

sidewndr46 3y ago
looks like the rules were changed sometime in 2020 based off this leaflet: https://www.fdic.gov/resources/deposit-insurance/brochures/documents/your-insured-deposits-english.pdf https://www.fdic.gov/resources/deposit-insurance/brochures/d... I don't know what section of the Federal Register to consult to see if that is actually backed up by something enforceable
- JumpCrisscross 3y ago
  > the rules were changed sometime in 2020 What rule are you referring to? FDIC coverage has never had a lifetime limit. That would mean someone who gets an FDIC payout at one bank should rush to pull their deposits at others.
- pgwhalen 3y ago
  What are you referring to in this document? The only reference to "lifetime" is for revocable trust accounts, which obviously is not the kind of FDIC insurance most people are concerned about.
Workaccount2 3y ago
FDIC went beyond the $250k limit for depositors last year for SVB collapse.
- hn_throwaway_99 3y ago
  I know that. I was replying to the statement that "Also FDIC limit is theoretically a lifetime limit per individual" which, AFAIK, has never been true.
giantg2 3y ago
I'm not exactly sure what they're saying either. My thought with the "theoretically" part was that the insurance funding program wouldn't be able to support widespread failures. Without adjusting funding, average lifetime claims wouldn't be able to sustain 1 failure per person let alone multiple. Sure, the rules don't stop you, but the reality does.

sidewndr46 3y ago

looks like the rules were changed sometime in 2020 based off this leaflet: https://www.fdic.gov/resources/deposit-insurance/brochures/documents/your-insured-deposits-english.pdf https://www.fdic.gov/resources/deposit-insurance/brochures/d... I don't know what section of the Federal Register to consult to see if that is actually backed up by something enforceable

JumpCrisscross 3y ago
> the rules were changed sometime in 2020 What rule are you referring to? FDIC coverage has never had a lifetime limit. That would mean someone who gets an FDIC payout at one bank should rush to pull their deposits at others.
pgwhalen 3y ago
What are you referring to in this document? The only reference to "lifetime" is for revocable trust accounts, which obviously is not the kind of FDIC insurance most people are concerned about.

Workaccount2 3y ago

FDIC went beyond the $250k limit for depositors last year for SVB collapse.

hn_throwaway_99 3y ago
I know that. I was replying to the statement that "Also FDIC limit is theoretically a lifetime limit per individual" which, AFAIK, has never been true.

giantg2 3y ago

I'm not exactly sure what they're saying either. My thought with the "theoretically" part was that the insurance funding program wouldn't be able to support widespread failures. Without adjusting funding, average lifetime claims wouldn't be able to sustain 1 failure per person let alone multiple. Sure, the rules don't stop you, but the reality does.