AskUSA

320 readers

30 users here now

About

Community for asking and answering any question related to the life, the people or anything related to the USA. Non-US people are welcome to provide their perspective! Please keep in mind:

[email protected] - politics in our daily lives is inescapable, but please post overtly political things there rather than here
[email protected] - similarly things with the goal of overt agitation have their place, which is there rather than here

Rules

Be nice or gtfo
Discussions of overt political or agitation nature belong elsewhere
Follow the rules of discuss.online

Sister communities

Related communities

founded 1 month ago

MODERATORS

[email protected]

Is anyone else worried about the FDIC? (dubvee.org)

submitted 2 days ago* (last edited 2 days ago) by [email protected] to c/[email protected]

19 comments fedilink hide all child comments

Background:

What prompted this is I logged into my bank this morning to send some bill payments, and the FDIC banner at the top caught my attention. At first it made me laugh because of recent events, but that laugh turned into kind of a nervous chuckle:

I was like "Surely this administration won't fuck with the FDIC" but then read through the articles above, and now I'm not so confident.

Currently, I use a small, local bank. I've never really worried about it because of FDIC protections, but should I move my money out of it to a larger bank? Withdraw it all and stuff it in my mattress?

I'm not freaking out, but I am concerned about this for the first time in my life.

The rational part of me says that if it gets to that point, my money would probably be worthless anyway except for burning it to keep warm.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 6 points 2 days ago* (last edited 2 days ago) (1 children)

Maybe I learned it wrong, but I always thought it was per account holder. The upper limit has always been well above what I'd ever be likely have on hand/liquid, anyway, so never bothered to clarify.

Looks like yeah, it is per depositor per bank:

FDIC deposit insurance protects bank customers in the event that an FDIC-insured depository institution fails. Bank customers don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

https://www.fdic.gov/resources/deposit-insurance/faq

I have heard that financial managers can and do spread large dollar accounts out over multiple banks, though. There may also be something they can play with in regard to the "per ownership category" aspect, though.

[–] [email protected] 6 points 2 days ago* (last edited 2 days ago) (1 children)

Huh, I may be experiencing a Mandela effect.

Edit: So there’s a way to do it, but I’ll involve multiple banks, people, and/or account types. Still probably what rich people do.

Via: https://money.stackexchange.com/questions/123961/is-the-250-000-individual-fdic-limit-per-account-or-per-person

The limit is per account type, per bank, per depositor: https://www.fdic.gov/deposit/deposits/brochures/deposit-insurance-at-a-glance-english.html

You can easily distribute your millions across multiple banks, or under your spouse's name, or in a different type of account ownership categories (like savings, IRAs, joint accounts, ...), and be covered.

[–] [email protected] 2 points 2 days ago

This is what I do. But, my motivation was different. If the government or some corporation wants my assets I've made it as complicated as I can for them to take them: many accounts, different types, in the US and abroad. There's certainly overhead. But, it's mostly administration and limitations on liquidity.