[throwing_away]

Could a tech company have split their accounts into separate $250k accounts? I'm not sure if the bank would offer that.

[x3n0ph3n3]

No, FDIC insurance applies to account owners, not accounts.

Fun fact, if you're married, you can actually turn that into 3 * FDIC insurance limit.

- Account 1: You

- Account 2: Your spouse

- Account 3: Jointly you and your spouse

[paulclinger]

Even more: single, joint, retirement, revocable and irrevocable trust accounts all fall into different categories and are insured independently for each account owner in each bank (the joint account is 250k for all co-owners): https://www.fdic.gov/resources/deposit-insurance/financial-p...

[edulix]

Or you could hold short-term t-bills for any extra money over the FDIC insurance limit. Then you are good unless the US Gov goes bankrupt, which is a non-zero risk but much lower and different.

[tome]

Yes, I don’t understand what systemic forces are making this not the standard practice.

[phone[phone]]

SVB and its depositors most likely felt that SVB was too big to fail and that the government would just bail them out

[quesera]

You'd need to split across multiple banks.

This can be done manually, with some logistical challenges.

This can also be done automatically, e.g. via CDARS.