[thecus]

So, when you're running a $3mm payroll, how do you do that while keeping money in an FDIC insured state.

FDIC needs to be reformed. I feel like it's been 250k for my entire life lol, at the very least the amount needs to be revisited.

[mlyle]

If you're running a $3m payroll, odds are you have a lot more than $3m in cash.

Sure, smaller transactions in flight will always be at risk.

> FDIC needs to be reformed. I feel like it's been 250k for my entire life lol, at the very least the amount needs to be revisited.

It moved from $100,000 to $250,000 15 years ago.

[azinman2]

So where do you keep that more than $3M in cash? Always in N/250k banks? This is not a useful solution to running a company.

[fma]

I mentioned in another comment, but there are account features where your money is deposited to N banks automatically. i.e.

https://www.interactivebrokers.com/en/accounts/sweep-program...

https://www.cnb.com/business-banking/accounts/savings/bank-d...

https://www.wellsfargo.com/investing/cash-sweep/

Of course if those banks are depositing to the same 10 banks then you're really protected at 10x...but, well much better than 250k? I'm going to guess it's called a "Sweep Program" but I'm no finance expert. I know of this because it's common for brokerage account to do this - as very often, you'll have more than $250k in cash if you're doing active trading.

[mlyle]

You just ask IntraFi to place it for you. https://www.intrafi.com/services/deposit-solutions/for-regio...

It generally looks transparent and like it's just in your chosen bank. (Though if you want laddering, etc, you do need to plan).

If you have a lot of cash, you buy T-Bills and other instruments with some of it.

And yes, you have some risk remaining, of some of the cash disappearing. But with diversification and insurance, it is negligible.

[dkjaudyeqooe]

You don't need the FDIC, lodge your money directly with the US government.

Let's say you earn your income 28 days before you have to pay out wages (for illustration purposes). You buy a 28 day Treasury bill which matures in time for you to make payroll. Even if they're paid into a bank account you're taking a lot less risk having money sit for a day than continuously. You also earn a little interest.

[kentonv]

Yes, the limit seems especially poorly-suited to businesses.

Though, there do exist meta-banks that split funds across multiple other bank accounts in order to achieve higher FDIC limits. Maybe we'll start seeing more of these.

Otherwise, I think the FDIC needs to revise the rules.