I heard your money is insured up to 100,000 in a savings if a bank goes out of business?

Question

I heard that your money is insured up to 100,000 if a bank goes out of business, but what if u have 200,000 or even a million in the bank..does that mean u only get 100,000 back from teh goverment and you lose all the rest? Is there some rule that banks have to let clients know when they're about to go out of business so they can take there money elsewhere??

Answer 1

You deposit your money in different banks which none of them exceeds 100.000 USD. If your money is too big then you shouldnt deposit your money someone else's bank. You can open a bank or keep them in a safe. The safe could be hosted by some bank. If you do it then noting undesired happens to your money. Good luck!
Ps. No consultation fee. Feed a poor.

Answer 2

Banks that have FDIC insurance will insure each account up to $100,000. If you have more than that, you need to split your money up into separate accounts in separate banks. So, if you have $500,000 you should split it up into 5 separate accounts at 5 separate banks. Even if you had 5 different accounts in the same bank, you'd only be covered for up to $100,000.

And, no, there are no rules that a bank needs to tell clients it's about to go out of business before it does. It's VERY unlikely that any legit bank today (and those that have FDIC insurance are legit) would go out of business. I don't think you need to worry about that.

Answer 3

If your financial institution is FDIC insured, your total deposits are guaranteed by the FDIC, an agent of the government, up to $100,000.00 Your bank will probably not close down. When banks are not doing well, a larger bank will usually buy them out or merge with them. The government and regulators closely monitor banks to prevent failure. If you have over 100K in a bank, an officer will help you structure your accounts so that your total deposits are covered. When you have two names on an account, for example, each person gets 100K, so your account getts 200K. When you get into multiple accounts with multiple combinations of ownership, it gets more complicated. Moreover, the 100K coverage is for each bank, so if you have $100K at 4 different banks, you have $400K of insurance.

Answer 4

Only if the financial institution participates in FDIC program. I think they are required to participate. Funding up to $100,000.00 after that you wouldn't be covered for the difference. Yes the financial institution has to notify you. Failure of notification hasn't happened here since the scandals with the Savings and Loans in the late 70's and then the Great Depression. FDIC was set up to avoid those issues.

Answer 5

Yeah, that's why you should never put so much many in the bank.

Answer 6

You are insurred up to 100,000.00. Anything above that is tough cookies.

Answer 7

Yup. It's called FDIC.