heidismiles t1_jddfsh5 wrote on March 23, 2023 at 4:33 PM

Reply to comment by Flaky-Illustrator-52 in LPT: Consider a "cash management account" instead of a standard bank account by Flaky-Illustrator-52

FDIC insurance covers $250,000.

laplongejr t1_jdhzrvt wrote on March 24, 2023 at 3:10 PM

Yeah, but what do you do in the meantime when the bank is out and FDIC is busy? The point is to avoid the practical issue of now way to access the money.

Flaky-Illustrator-52 OP t1_jdpvmhp wrote on March 26, 2023 at 6:45 AM

The same thing you'd do if you'd deposited your money in a bank that just caked its pants and the FDIC was busy - wait and cross your fingers

Flaky-Illustrator-52 OP t1_jddgj3x wrote on March 23, 2023 at 4:38 PM

$250,000*as many accounts as you have open. FDIC insurance isn't per depositor only. It is per depositor, per institution, for each account ownership category. That is how these "cash management accounts" are able to push the limit higher - they're actually multiple accounts at multiple institutions with an interface that appears to just be one account at the institution you made your "cash management account" at

heidismiles t1_jddim83 wrote on March 23, 2023 at 4:51 PM

That's my point. Your advice is only relevant for millionaires.

Flaky-Illustrator-52 OP t1_jddkua8 wrote on March 23, 2023 at 5:05 PM

No, it isn't only for millionaires - if you have less money it is still relevant because you're depositing in multiple institutions. You'd know that if you actually read my post