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Comment on If a US bank only insures your money up to 250k does that mean I have to visit four different back to have a million dollars insured?

Steve@communick.news ⁨13⁩ ⁨hours⁩ ago

While that is what they’re legally required to insure. The reality is that even people with 10s of millions get fully covered. The FDIC has been covering 100% of retail bank accounts for a few decades.

Most recently when the Silicon Valley Bank collapsed, accounts with over $60M were fully covered.

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jeffw@lemmy.world ⁨13⁩ ⁨hours⁩ ago
That’s because in those cases the FDIC receives the assets from the bank and distributes those. If they didn’t receive enough funds, individual depositors would not receive extra coverage from the FDIC

A quick google search showed that this happens to about 6% of accounts over the insured limit

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just_another_person@lemmy.world ⁨13⁩ ⁨hours⁩ ago
Not legally guaranteed though, and it has to be a HUGE bank. Regional banks or Credit Unions will not do this.

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- Steve@communick.news ⁨13⁩ ⁨hours⁩ ago
  The banks and credit unions don’t do cover the deposits. FDIC is for when the bank itself fails, when they can’t cover their customer’s deposits.
  
  And yes it happens all the time for regional banks and credit unions. SVB was news only because they’re an odly large and important regional bank. But they were treated by FDIC like any other. No depositor at any retail bank in the US has lost their money due to a bank failure in 20+ years.
  
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  - just_another_person@lemmy.world ⁨13⁩ ⁨hours⁩ ago
    Sorry, I should have been more. ABOVE the 250k level is what they aren’t LEGALLY required to cover. Banks that do that and are FDIC insured are doing that on their own.
    
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    Steve@communick.news ⁨13⁩ ⁨hours⁩ ago
    
    ABOVE the 250k level is what they aren’t LEGALLY required to cover.
    
    Yes that’s just reiterating what I literally said originally.
    
    There aren’t different tiers of FDIC insurance. The banks aren’t choosing to paying for extra coverage. The FDIC is a federal program. Yes the banks pay into it. It’s required by law that they do. But the FDIC decides on it’s own if it will cover more than $250k. And they have, for every bank collapse, no matter the size, at least since the late 90s.
    
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