Question: If you put $250,000 in four banks that are FDIC insured, is all the money safe from failures?
The $250,000 is per depositor per bank. So, $250,000 in each of four banks is $1,000,000.
“Question: If you put $250,000 in four banks that are FDIC insured, is all the money safe from failures?”
Supposedly yes. If you are married and/or have a significant other as a signature co owner, as a couple you are insured up 500,000 $.
Deposit Insurance - FDIC
Federal Deposit Insurance Corporation (.gov)
https://www.fdic.gov › resources › deposit-insurance
Mar 1, 2023 — The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
Important Update!
Revocable and Irrevocable Trust Rule Change Effective April 1, 2024
Mortgage Servicing Accounts Rule Change Effective April 1, 2024
All the rules discussed in this section are current through March 31, 2024. The FDIC approved changes, on January 21, 2022, to the deposit insurance rules for revocable trust accounts (including formal trusts, POD/ITF), irrevocable trust accounts, and mortgage servicing accounts. For most trust depositors (those with less than $1,250,000), the FDIC expects the coverage levels to be unchanged. However, the new rule may reduce coverage for those depositors who have placed more than $1,250,000 per owner in trust deposits at one insured institution. The new rule (PDF) combines the revocable and irrevocable trust account categories into one insurance category, eliminates some complex rules, and utilizes a simple insurance calculation. You can learn more about the new changes, including for mortgage servicing accounts, by reviewing this fact sheet (PDF). The changes are effective April 1, 2024, giving bankers and depositors time to adjust to the new rule, including making any changes to avoid a potential reduction in coverage. We suggest depositors and bankers review the new rules for time deposits with maturities beyond April 1, 2024.
“If you put $250,000 in four banks that are FDIC insured, is all the money safe from failures?”
From what I understand, with even 250,000 in one bank, the insurance is a scam. Yes you will get money if your lucky. But you will get it over the next 50 years or so. Big frigen deal. I’m a septuagenerian. Even if you were 35 you’d likely be dead by the time it was due.
This is my understanding... if anyone can confirm this jump in.
yes, you should be.
It is 250,000 per institution
Yes.
Only as long as the FDIC remains solvent. Their current funds are 128B. Current bank deposits are about 20T. If the dominos start falling, FDIC becomes irrelevant real quick.
It would have to be 4 separate banks-—
NOT 4 different branches of the same bank—
Then insurance should kick in on each different account.
You cannot have different accounts with different names except under certain circumstances.
I once sat down & figured out how many different accounts I would have to have IF I won the Lottery.
Finally figured out a LARGE safe would work better!!
“Question: If you put $250,000 in four banks that are FDIC insured, is all the money safe from failures?”
Yes.
The $250K is per person so you can put that amount in your account and your spouse can have another $250K in their account and all $500K remains insured.
Dodd Frank Act allows bale ins. You know what like happened in Greece. They will take funds. The FDIC doesn’t have enough reserves to pay out $250,000 per depositor.