Is is not safe to have over 100K in an FDIC account, to the point where I should start another account instead of just adding onto the 100K+ account. Is there any really worries I should have about have a sum that large in one account?

 

The only risk is if the bank or insured institution is under-funded or over-leveraged, at which point only the initial $100K in each consumer's account will be insured in the event of a failure or liquidation.

 

So should my thought process be:
"my money is in HSBC, there is nothing to worry about?

Or:

"why risk it, just start a new account at a new institution"

 

For me to have 100k in a savings account would require that I have about $10 million in other assets

But to answer your question, I would start a new account. Savings accounts are supposed to be risk free, why add risk?

 

You can just start another account at HSBC-- each separate account is insured to $100K; you don't need to have separate banks. CDs are insured as well, if you are getting low interest in an actual savings account.

 

i can hold it for your

 

Not that this answers your question, but don't forget about compound interest!

one 200K account > two 100K accounts (which you probably knew.. but anyhow)

 

If you are really worried about having a large amount in one account due to a bank tanking. There is nothing wrong with having several accounts spread over several banks.

Don't forget, if you're married, a joint account is covered PER person PER 100K... That means 200K is insured in ONE account.

 

Will Y. - You're partially right. If one account is a personal account (single ownership) and the second account is a joint account (multiple ownership), then the total insured is still $100k. It is just broken up differently. For example, if the single ownership account has a balance of $75k and the jont account has a balance of $100k, then the individual on both accounts is secured for $100k and uninsured for $25k ($75k in the single and $50k in the joint).

See FDIC for more information.

 

I am single and have no joint accounts. So to be safe, I'm probably going to open a new account at a new institution.

 

FDIC covers EACH account account up to 100k however they have to be titled differently example

acct 1: john doe up to 100k
acct2: john doe/ jane doe 100k
acct3: john doe/john doe jr 100k

also if theyare different accts like 1 checking 1 savings, ira etc

i believe they are covering the iras to 200k now if im not mistaken.

luckily, the 20 dollars i have in my savings are fully protected

 

Gibson - I believe you already made your decision. But, FDIC has a calculator that can assist you in the future.

www2.fdic.gov/edie

Also, IRA accounts are insured up to $250k.

 

Just another thought. You could also go to a brokerage house and they all have bank deposit programs that are FDIC insured to a million. Plus those bank deposit programs are often times based on CD rates and therefore blow savings accounts out of the water in terms of APR.

 

If you've got 100k, the last place I would be parking it is at a bank unless you know you'll be needing that money in the very near short term. There are a number of investment vehicles you can really be taking advantage of. Depending on what you do, there are products that will allow you tax deductible contributions, grow gains tax deferred, and have withdrawals that are federally income tax free.




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Please consult your CPA or Tax Advisor regarding any Tax Issues. For further Financial Planning assistance, please consult your Financial Advisor. If you'd like assistance or to be put on my mailing list, please feel free to PM me so I may follow up with you via work in a more professional and secure manner.

 

Yeah, you can ladder out a substantial amount in CD's.

You can buy new or used CD's, no sales charge with new CD's. Yes, there is a secondary market in CD's - people do buy and sell them before due date like bonds. Many people, including bankers, don't understand that this is possible. Just buy through a brokerage platform that allows you to buy / sell CD's.

You stay within the FDIC limits with CDs so you are never uninsured anywhere. You get one statement, where you have X number of CD's with some a bank here and X number of CD's at another bank in another state but it is all on one statement and the CD's can be managed...meaning when one matures another one can be bought.



Disclosure: I am a FINRA Securities Registered Rep and Investment advisor. I will not be held liable for advice taken or followed as a result of my postings on the Acurazine Forum.

Please consult your CPA or Tax Advisor regarding any Tax Issues. For further Financial Planning assistance, please consult your Financial Advisor. If you'd like assistance or to be put on my mailing list, please feel free to PM me so I may follow up with you via work in a more professional and secure manner.

 

Thanks for all the help guys, i need the money pretty liquid because I may be using a lot of it on a DP for a house soon. i went ahead and reactivated an old ING account i had set up and will just be transfering funds into there until I figure things out with the housing situation.

Thanks again.