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    other than ally, which is good?

    synchrony?

    marcus?

    i maxed out my fdic insured at ally and thanks to you all I'm now trying to address all the money I'm not making at my local b&m bank.

     

  • #2
    USAA if you're eligible.

    Comment


    • #3
      Capital One 360

      Comment


      • #4




        Capital One 360
        Click to expand...


        it looks like currently savings account interest rates

        synchrony 1.55%

        marcus 1.5

        capital one 1

         

         

        Comment


        • #5







          Capital One 360
          Click to expand…


          it looks like currently savings account interest rates

          synchrony 1.55%

          marcus 1.5

          capital one 1

           

           
          Click to expand...


          The Cap One 360 MM is 1.5%

          The App is robust, and I use the MM, savings, checking/debit all linked to kids' debit cards and my B&M bank.

          https://www.capitalone.com/bank/savings-accounts/online-money-market-account/

          Comment


          • #6
            gracias

            i will sign up!

             

            Comment


            • #7
              That's a lot of cash. What's the occasion?

              Comment


              • #8







                other than ally, which is good?

                synchrony?

                marcus?

                i maxed out my fdic insured at ally and thanks to you all I’m now trying to address all the money I’m not making at my local b&m bank.

                 
                Click to expand…


                FDIC doesn’t work that way. It’s 250K total no matter how many banks you use.

                If you have 250K in 10 different banks you don’t have 2.5M insured. Only 250K. So if there is a sytemic crisis you’re SOL.

                The FAQ at the FDIC website is wrong. “The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.”  During the 2008 crisis the truth came out…they make the rules up as they go along…it was only 250K per person total no matter how many banks. You have to come to grips with the fact the the DIF and SIPC are faux insurance. Window dressing only in case of systemic crisis.
                Click to expand...


                can anyone else comment on this?

                this seems to me to be quite important.

                 

                Comment


                • #9




                  That’s a lot of cash. What’s the occasion?
                  Click to expand...


                  old age.

                  i keep a larger emergency fund than most, and I am preparing for commercial real estate entry.

                   

                  Comment


                  • #10










                    other than ally, which is good?

                    synchrony?

                    marcus?

                    i maxed out my fdic insured at ally and thanks to you all I’m now trying to address all the money I’m not making at my local b&m bank.

                     
                    Click to expand…


                    FDIC doesn’t work that way. It’s 250K total no matter how many banks you use.

                    If you have 250K in 10 different banks you don’t have 2.5M insured. Only 250K. So if there is a sytemic crisis you’re SOL.

                    The FAQ at the FDIC website is wrong. “The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.”  During the 2008 crisis the truth came out…they make the rules up as they go along…it was only 250K per person total no matter how many banks. You have to come to grips with the fact the the DIF and SIPC are faux insurance. Window dressing only in case of systemic crisis.
                    Click to expand…


                    can anyone else comment on this?

                    this seems to me to be quite important.

                     
                    Click to expand...


                    He is wrong and just sowing fear. Don’t fall prey. Go to FDIC website and use their tool about coverage if you are concerned.  If the account is joint, you get $250K per person on that one account.

                    Comment


                    • #11
                      Per institution cap.  They also changed the rules within institutions and raised the bar because of all those fears.  The cap is now 250k per person per institution.

                       

                      cap 360 used to be ingdirect before it was divested.  Still have that mm account.

                      Comment


                      • #12
                        cannot comment on whether the rules change as toecheeze describes, but can do google search:

                        the fdic website has this:

                        A: The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. For a basic category-by-category overview of FDIC deposit insurance coverage, you can use the Account Categories tool.

                        Q: Can I have more than $250,000 of deposit insurance coverage at one FDIC-insured bank?


                        A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank. For example, a revocable trust account (including living trusts and informal revocable trusts commonly referred to as payable on death (POD) accounts) with one owner naming three unique beneficiaries can be insured up to $750,000. See the Your Insured Deposit brochure for details.

                        https://www.fdic.gov/deposit/deposits/faq.html

                        -------------------

                         

                        Comment


                        • #13




                          The FDIC can say whatever they want on their website, but the numbers are the numbers. The DIF is about 90B. Intended to insure around 13T in deposits (granted a rough approximation). Maybe it can pay out 1-2% of its obligations. If one institution fails, the FDIC is probably ok. If multiple fail in a systemic crisis, we shall see. The FDIC is a confidence game intended to reduce the chances of a bank run. If a true run on the banks really happened, the FDIC will not be what everyone thinks it is. Not fearmongering, just numbers/reality. It’s also reality that the chances of a systemic liquidity event are very low. But then again so was the insolvency of the XIV.

                          And, it will be interesting to see how much the Federal Govt backstops the FDIC when it has declining tax receipts and rising inflation-indexed transfer payments during such a liquidity crisis.
                          Click to expand...


                          is it correct to summarize that you think multiple banks may be safer than one bank, even if more due to liquidity/bankruptcy than fdic?

                          would you say marginally safer or significantly safer?

                          thanks

                           

                          Comment


                          • #14




                            Just avoid banks altogether. Have one for checking with a few months’ liquidity. Keep rest of the cash in 1mo tbills set to auto-rollover in a TresuryDirect account. The only counterparty risk then is the printing press or a Sunday night announcement. And if you think that is crazy take a gander at the latest new language in the Fed minutes a couple weeks ago. They are prepping for foreign exchange crises.
                            Click to expand...


                            where does one find about more about these T-bills you speak of?

                             

                            Comment


                            • #15







                              Just avoid banks altogether. Have one for checking with a few months’ liquidity. Keep rest of the cash in 1mo tbills set to auto-rollover in a TresuryDirect account. The only counterparty risk then is the printing press or a Sunday night announcement. And if you think that is crazy take a gander at the latest new language in the Fed minutes a couple weeks ago. They are prepping for foreign exchange crises.
                              Click to expand…


                              where does one find about more about these T-bills you speak of?

                               
                              Click to expand...


                              Not advocating that strategy, just providing a link:

                              https://www.treasurydirect.gov

                              Comment

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