It safe to have all your money in one bank (FDIC insured) or better to have it in few banks. Thanks...?

Answer 1

According to FDIC.gov:

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Basic Insurance Amount Is $100,000
The FDIC insures deposit accounts such as checking, NOW and savings accounts, money market deposit accounts, and certificates of deposit (CDs). The basic insurance amount is $100,000 per depositor per insured bank.

If you or your family has $100,000 or less in all of your deposit accounts at the same insured bank, you do not need to worry about your insurance coverage. Your funds are fully insured.

The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if you purchased these products from an insured bank.

The FDIC also does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.

Coverage Over $100,000
If you or your family has deposits at one insured bank totaling more than $100,000, you should know that different ownership categories of accounts are separately insured.

You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories.

In addition, federal law provides up to $250,000 in deposit insurance coverage for self-directed retirement accounts, such as Individual Retirement Accounts (IRAs).
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Answer 2

I had the same question about 6 months ago. I had several hundred thousand in a single account and was concerned with the possibility of losing all but the insured $100K. I spoke to many people and the final outcome is that I split it up for convenience sake and not per the $100K limit.

I used only larger banks to minimize risk of bankruptcy but do exceed the $100K limit. Keep in mind that if a large bank (i.e BofA, WF, etc) has financial trouble, the government will prop them up or potentially risk a huge impact upon our economy. Smaller banks won't get this kind of treatment.

Answer 3

Keep up to a 100k in any FDIC insured bank and if it is more then open another a/c in the same bank or another one as the FDIC insures funds only up to a 100k per account.

Answer 4

If your accounts total deposits are below the level of insurance, it's safe at one institution, however once your accounts exceed the limitation, ($100,000.00), you should place any additional funds at another banking institution. Different bank, as you are insured only for all of your accounts when your total funds are $100K or less, and not for $100K in each account.

Answer 5

There is an old saying that says something like this, " Don't keep your eggs all in one basket". There must have been a reason for this to have been said.