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by cduzz 1192 days ago
You sure about that?

If you have an account with noname for $3,000k and noname has 12 accounts with localcorp1-localcorp12 each of $250k -- and noname goes poof, what happens?

I think, according to the preSVB rules, you get $250k from FDIC and then get a very strong claim to $2,750k from the rest of noname's assets (if no BigBank steps in to buy the part of noname you're connected to).

https://www.fdic.gov/consumers/banking/facts/priority.html

You'll (probably) get your money back, but after how much time?
2 comments
dilyevsky 1192 days ago
When I look at acc statement it shows a list of completely different banks each with <250K. If our bank goes bust I presume we get our first 250K that are sitting in the bank itself as soon as FDIC takes over which is enough for operations and will need to contact other banks for our money. It's more like a brokerage account than a regular deposit.
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cduzz 1192 days ago
I'd give those other banks a call and ask.

Also, per FDIC rules, the 250k is per party attached to the account, so at least for a married couple it seems to be $500k per account.

But hey, I'm sure it'll all be fine and we won't need to worry about the fine print.

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dragonwriter 1192 days ago
> Also, per FDIC rules, the 250k is per party attached to the account, so at least for a married couple it seems to be $500k per account.

Its per owner per account class, but what constitutes an owner varies by account class, and, IIRC, many class by definition have a single owner.

But, yeah, you can double your coverage in simple directly-owned accounts as a married couple by splitting funds between maxed out single accounts ($250K) for each party and a maxed out joint account ($500K) for a total of $1M in coverage, because single and joint accounts are separate categories.

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dragonwriter 1192 days ago
Brokered deposits are insured in the depositor (not brokers) name. If they still happen to be over the $250K limit, they are historically the least likely accounts to get full value back in a failure, but as long as there is less than the insurance limit per bank, they are fully covered.
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