[freeone3000]

It spreads risk throughout the system. In a maximally-resilient scenario, everyone would have a small deposit at every possible bank -- then when any bank fails, it's "no big deal", and you won't panic and withdraw your money from the rest. This is similar -- any particular failure is going to be for half (or less!) of your money, instead of all of it, reducing the urgency and spreading out the risk.

[bee_rider]

Ah, that’s interesting. So spreading the accounts across multiple banks is essentially accomplishing the goal of the program.