We have all been made aware of the recent news regarding SVB and the possibility of individuals losing their deposits that exceed the FDIC insured limit. Given that this limit is not particularly high, there are concerns regarding whether individuals will lose all of their funds that exceed the insured limit.

What options are available to individuals who hold funds exceeding the FDIC insured limit for a single account? Apart from maintaining accounts across multiple banks, are there any other viable alternatives? TIA.

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FDIC is insurance that pays out of a bank fails up to 250k per account.

So that’s all that the bank is insured for.

However when the bank goes it doesn’t automatically mean there is no money. it’s like a normal bankruptcy.

So all bank assets will be sold (assuming no bail out or corporate buy out etc)

This likely means most people will get some of their money back. But we won’t know exactly how much because it will depend on how much money can be reclaimed.

Technically though because these accounts are only insured up to 250k everyone who has more than 250k in the bank can lose the difference.

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