Multiple savings account for real estate transaction

Cisco
gazni

Go to company page Cisco

gazni
Oct 13, 2021 5 Comments

Does FDIC insurance vary from bank to bank or it is 250k standard.
If real estate transaction results in more than 250k proceeds, then is it possible to give multiple accounts to escrow company ? That way we can specify 200k in account1, 200k in account2 etc.

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TOP 5 Comments
  • If you are that worried that your bank will fail and lose your deposits maybe you shouldn’t use that account. But to your point there are brokerages that give over a million dollars worth of FDIC insurance by splitting your deposits across multiple banks. Fidelity does for example
    Oct 13, 2021 2
    • Cisco
      gazni

      Go to company page Cisco

      gazni
      OP
      what it means is, i can give fidelity account number and it has over 1M USD in FDIC insurance ?
      I am afraid that proceeds will be 500k+ and depositing in 1 account can be risky.
      Oct 13, 2021
    • Yes. Fidelity internally juggles your deposits for FDIC coverage. You can even see the details online on which bank Fidelity is storing how much with.
      Oct 13, 2021
  • Currently it is 1.25 million in aggregate. Note that if you already have an account with a bank that Fidelity contracts with, you won’t get duplicate coverage and so can tell fidelity to not use that bank internally
    Oct 13, 2021 1