Capital One 360
Capital One 360
it looks like currently savings account interest rates
synchrony 1.55%
marcus 1.5
capital one 1
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.
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.
That’s a lot of cash. What’s the occasion?
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.
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.
can anyone else comment on this?
this seems to me to be quite important.
Q: Can I have more than $250,000 of deposit insurance coverage at one FDIC-insured bank?
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.
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.
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.
where does one find about more about these T-bills you speak of?
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