FDIC Insurance: Limits and Risks for High Deposits
TL;DR
Some financial institutions, primarily fintechs and online banks, provide savers with FDIC coverage that exceeds the $250,000 limit. Wealthfront's Cash Account offers $3 million of FDIC coverage for individual accounts and $6 million for joint accounts. Betterment Cash Reserve offers up to $1 million in FDIC insurance coverage. SoFi is offering access to $2 million of FDIC insurance for individual checking and savings members. The process works by taking the money you place in the deposit account and spreading it across a network of banks that are FDIC insured.
- These accounts offer FDIC insurance for deposits greater than $250,000 CNBC
- Expanding the FDIC deposit cap would increase the rate of bank failures, says Cato's Mark Calabria CNBC Television
- SVB, Signature Depositors Won't Lose Their Money. What Happens if Another Bank Fails? The Wall Street Journal
- Silicon Valley Bank: Insurance for All Bank Deposits Is Manageable Bloomberg
- View Full Coverage on Google News
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