Let's say I have 1m in my investment account. FDIC insurance is 250k only. If I create 5 different accounts (HSA, brokerage, Roth, brokerage in another bank, etc...)and put 200k in each, Will my FDIC insurance be multiplied and cover everything?
Yes. Note that FDIC insurance only applies to deposits, not investments
FDIC looks at per depositor per bank. So you have to use different banks. Also, brokerage accounts are covered up to 500k.
Is this true? Perhaps it is. Some instruments must use multiple banks (for example, mercury insurances $1m)
No coverage on investment accounts
Look up SIPC. When a broker goes bankrupt, SIPC steps in and all securities are taken care of. Broker going bankrupt shouldn't affect any investments. https://www.investopedia.com/terms/s/sipc.asp FDIC: For deposits, each account type in one bank gets its own 250k limit. But account type definition is hazy. Check examples here: https://www.investopedia.com/terms/f/fdic.asp Of course something in another bank also gets it's own 250k limit. So yes spreading helps.
Oh thanks! Yeah my money is mostly invested. I have fidelity and E-Trade. Fidelity seems to be epic member, E-Trade not sure
If you are married and hold joint account, you get up to 500k. You can try something like Fidelity cash management account, and they split it into multiple saving account, brokerage account etc https://www.fidelity.com/cash-management/fidelity-cash-management-account/overview…
Also there is no point in holding cash above 250k. Why not diversify with real estate, govt bonds, index funds, voo, emerging markets etc
Unfortunately, it looks like this page was moved or deleted Panic!!!
Tech Industry
2d
7624
What happens when most of your team is Indian?
Tech Industry
Yesterday
200
Shoud I remove military experience from my resume?
Tech Industry
Yesterday
2146
Do people underestimate E6 role at meta?
World Conflicts
Yesterday
627
Is "From the River to the Sea" So Wrong?
World Conflicts
Yesterday
548
Why I Find Free Palestine Inspiring
Yes