Background:

What prompted this is I logged into my bank this morning to send some bill payments, and the FDIC banner at the top caught my attention. At first it made me laugh because of recent events, but that laugh turned into kind of a nervous chuckle:

I was like “Surely this administration won’t fuck with the FDIC” but then read through the articles above, and now I’m not so confident.

Currently, I use a small, local bank. I’ve never really worried about it because of FDIC protections, but should I move my money out of it to a larger bank? Withdraw it all and stuff it in my mattress?

I’m not freaking out, but I am concerned about this for the first time in my life.

The rational part of me says that if it gets to that point, my money would probably be worthless anyway except for burning it to keep warm.

  • Admiral Patrick@dubvee.orgOPMEnglish
    6·
    1 day ago

    Maybe I learned it wrong, but I always thought it was per account holder. The upper limit has always been well above what I’d ever be likely have on hand/liquid, anyway, so never bothered to clarify.

    Looks like yeah, it is per depositor per bank:

    FDIC deposit insurance protects bank customers in the event that an FDIC-insured depository institution fails. Bank customers don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

    https://www.fdic.gov/resources/deposit-insurance/faq

    I have heard that financial managers can and do spread large dollar accounts out over multiple banks, though. There may also be something they can play with in regard to the “per ownership category” aspect, though.