is there a maximum cap or maximum limit how much a savings account can have?

Question

I don't know if each bank or the law governing banks sets a rule as to how much maximum a saving account can have.

Can it go well beyond millions or billions?

Answer 1

Most banks offer accounts with no limits, but the limit for FDIC insurance is usually set at $100,000 per depositor. That means if your bank goes out of business for whatever reason, the government will only pay you up to $100,000 for the insurance. If you have $75,000 in there, you get the full $75,000 (not sure if it is taxed though) but if you have $500,000, you only get $100,000. This is per depositor, not per account, so if you have $100,000 in checking and $100,000 in savings at the same bank, you get only $100,000. There's special rules for joint accounts, though. You can also purchase additional insurance on some types of accounts.

So, while it is theoretically possible to put all of your billions in one bank account, it's not done. Not just because you risk losing it all, but because putting the money in other accounts-- IRA, mutual fund, REIT, stock, etc--- gives you a better chance at making interest or dividends or other things that make your money grow. Interest paid on traditional accounts is pretty low by comparison and people who have that kind of money usually put it to work!

Answer 2

Newt is correct there is no limit on how much a savings account may contain or have in it, that is left to the individual and the bank.

There is a maximum that the FDIC (the institution that insure accounts for banks that use them) will insure is $100,000 per account. If I was your banker I would, in my attempt to protect you and your cash in an account would only recommend that you place the maximum in each account.

Now you can have as many accounts with the $100,000 as you would like.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

As far as i know, there is no limit, but there is a limit on how much of it is insured. So if the institution goes belly-up, you could be out some serious $$$$$$$$.

Answer 4

there's no max on the account, however they are insured up to 100,000, same for all banks. did you just win the lotto? maybe you should buy yourself a house first, then you can buy treasure bonds, no risk in that