[tersers]

This happens in Canada for credit unions and some online banks.

Fun fact, there exists a bug with EQ Bank where a deleted savings account still counts towards the maximum of 5 savings accounts. The customer service agent indicated this was a known bug and had been for some time! I'm planning to leave within the next year.

[chirau]

Why do you need 5 savings accounts?

[jmalicki]

Not sure exactly what is meant, but if this includes Certificates of Deposit, CD laddering was a frequent thing when interest rates were high enough to be worthwhile, where you'd want long-term CDs for the highest interest rates, but wan t to get the point of having some fraction of your CDs expire every month so you have liquidity, so you might have 60 5-yr CDs for instance, and somewhat less while you're working your way up to that

[wara23arish]

The US only insured accounts up to 250K so its common to split up accounts for that reason.

what a great problem to have

[vineyardmike]

That isn't how that works.

Its $250k per account type, per institution. So 5 savings accounts at the same institution doesn't increase your insurance over 1.

Some banks will "sweep" the excess funds into partner banks (which would increase protection).

[wara23arish]

Gotcha that makes sense.

[tdhoot]

It's only $250K per account category per bank. So 5 savings accounts would only get $250K in coverage in total.

[FastEatSlow]

Were the Canadian banks using US insurance?

[danuker]

Ouch @ inflation