Most people have seen the notices online or in your physical bank that your deposits in an FDIC Insured bank account are insured up to $100,000. But what if you find yourself with more than $100,000 in cash? Say, in between home selling and buying? Well, one easy way is to simply open another account at another bank (You can verify that they are indeed FDIC Insured at this FDIC webpage.)
You can also get around those limits all at one bank if you notice that accounts in different ownership categories, like individual and joint accounts, are insured separately. I found a handy chart [pdf] explaining this from Emigrant Direct’s FAQ Page:
Pretty neat. If you have a spouse, you can get $400k of coverage pretty easily. I’m sure setting up a revocable trust will involve at least some costs from lawyering and/or paperwork. Add in a kid and you can set up more trust for more coverage. There is more information from the FDIC site, but the site isn’t the best.
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You dont need to setup any trust. Just naming your kid as beneficiary does the trick . “Payable on death” accounts get separate FDIC coverage as long as beneficiary is a child, parent or sibling.
Not true. If you have a disabled child or young child/adult that you think can’t handle receiving all the money at once or don’t want to receive until a certain age…or If you own a business, own a house that’s worth some money, it should be in a trust. There are many factors to consider. It’s not that simple.
Ah, finding yourself with more than $100,000 in cash … that will be the day 🙂
But what if you need to store more than $100k in cash & you are not married & have no kids? In fact, what if you have more than a million? Managing the cash at several banks starts to get a bit nightmarish…even if you’re using an account aggregator like yodlee.com. I looked around and I found idcdeposits.com to solve this problem of managing large amounts of cash… has anyone used it or does anyone know any other ways of managing/storing large amounts of cash to get a 4+ % return (with no-risk/high liquidity)?
It is good to work the system in this regard, but I don’t get too excited about FDIC insurance. I guess it seems to work if a bank or two fails once in a while and offers some protection to an average joe, but if all banks failed during some sort of economic or currency crisis, it would be useless.
Also, who is to say that at some point in the future that the Federal Reserve may only insure a combined value of $100k? That is much power over a population of working people.
Any system based on a fiat currency and fractional reserve banking is little more than fraud. If enough people go along with the fraud, then everything may seem okay to a point. However, if enough banks were to fail, there would simply not be enough money available to cover all despositors who wanted their money back in cash.
I did follow the link and found that the bank I have my depleted checking account at is FDIC insured, so the usual thumbs up on the information provided at this blog.
http://etext.virginia.edu/jefferson/quotations/jeff1325.htm
“That paper money has some advantages is admitted. But that its abuses also are inevitable and, by breaking up the measure of value, makes a lottery of all private property, cannot be denied. –Thomas Jefferson to Josephus B. Stuart, 1817. ME 15:113
“I sincerely believe… that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” –Thomas Jefferson to John Taylor, 1816. ME 15:23
see the following:
http://www.safemoneyplaces.com/fdic.htm