If I have more than $100,000 in an FDIC insured bank can I lose the amount over the $100,000?

Question

Has it happened recently?

Answer 1

The amount of coverage is per account, not per bank. So if you have a $100M account in your name, $100M in an account under your business name, $100M in an account for your family trust, and $100M in an account vested in the name of your children, then all accounts are insured and you have $400M of principal covered - even if it's with the same bank.

There haven't been widespread personal losses at banks since the Depression in the 1930's, before the FDIC was formed. People used to sometimes rush in to withdraw their money if there was a loss of confidence ( a "run on the bank"), which could in itself put the bank out of business since reserves don't represent anywhere near 100% of deposits. The formation of the FDIC was with the idea that if principal was guaranteed, people wouldn't rush in to make withdrawals and create a self-fulfilling prophecy of a bank failure.

With that said, keep in mind that occassionally a bank can still fail (usually a small bank due to gross fraud), but it's very unusual because it's a highly regulated industry. That said, FDIC only guarantees principal - not interest - and it could take over a year to recover your deposits in the case of an actual failure.

Overall - I wouldn't worry. You're much more likely to lose your money some other way.

Answer 2

Yes, you can. That's the point of the FDIC insurance in the first place.

No, it doesn't happen very often. It will happen if a bank goes out of business and has more debt than it can pay for. The FDIC will (eventually... try 6 to 12 months) give you your money UP TO the $100,000 limit. If you had $150,000 and the bank went belly up, you're out $50,000 for good.

Note that the FDIC doesn't have anywhere close to enough money to cover every dollar on deposit. So if a lot of banks went bankrupt at once, we'd all be screwed becasue the FDIC simply could not meet the demand.

Try to find other ways to keep your money safe... foreign currency, gold (a big deal for people who don't trust paper money to keep its value), commodities... heck, store up for yourself treasure in Heaven. :)

Answer 3

As a depositor in Netbank, I assure you that bank failures can happen. Morevover, despite advice to the contrary, the 100,000 limit is by CLASS of account, not by account. If you have 4 different deposit accounts (say, checking, savings, CDs), they get consolidated when computing the FDIC limit. If you have deposit accounts and IRAs, each class of account can qualify for the FDIC limits.

Its much more complex than people are making it out to be here. You should read the FDIC website for real answers

Answer 4

Bigger issue than possibly losing money above $100K is the certainty that you lose money - buying power - because of taxes and inflation compared to the returns you typically get in FDIC insured instruments.

If you have some reasonable time horizon, move the money to mutual funds which, even though are not FDIC insured, can provide better returns. You control the amount of risk and reward by the type of fund you go to.

Anyway, moving your money to several FDIC insured accounts in different institutions easily addresses the concern you have.

Answer 5

How previous is your dad? He'd could be nicely previous ninety, frankly closer to one hundred to have "lost each and every thing" in 1929. The FDIC replaced into created in accordance with the economic corporation failures in 1929. through fact the beginning up of FDIC coverage on January a million, 1934, no depositor has lost a single cent of insured money as a results of a failure. coverage is constrained to deposits, and there's a cap on precisely how a lot money is insured (The shrink replaced into merely greater suitable to $250K at present.)

Answer 6

Yes, you can. Put the difference in a different bank. I'm not aware of every bank failure in the country, so I don't know the last time it's happened.

Answer 7

Yes ,
Just today the Feds had to shut down NetBank .
The people under $100K are covered by the FDIC ,
Those over are not .

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Answer 8

1) Yes.
2) Yes.

Answer 9

open multiple accounts - each acct or CD is insured for 100k

Answer 10

Very Very Very unlikely.