Works the same way with the NCUA and credit unions. They follow the exact same guidelines. But it's sad that so many depositors don't even know about the "payable on death" provision, which can save a ton of hassle after someone is promoted out of mortality.
We used the FDIC calculator thanks for the demo it showed us exceeding the FDIC limit soon based on deposits. Opening a new account very soon to stay safe! Thanks!
You just answered a question for me. I went over $250K in my bank account and wanted to open another account so I could have more FDIC coverage. The bank said no just name a beneficiary but didn’t explain why. That is what I did.
Can you cover SIPC insurance next? Honestly, good for those that have such large amounts of cash! But I don't see many scenarios where I would want to have such large amounts of cash and if I do, I would just use two banks. Brokerage however... that's a seven figure account for me and I bet for many on your channel (either now or soon, fellow investors!). So I bet we would get more value of knowing the ins and outs of brokerage insurances.
Brokerage is insured by SIPC, that’s $500K in securities, the question is if SIPC protection is per account, or per person? Hopefully per person in the brokerage account
@@p.c.h.6721 right on. Plus, the same way I actually learned something about FDIC I didn’t know (POD account limits extending past initial 250k) there could be stuff about SIPC we learn from a Rob video.
Can you do a video on SIPC insurance. SIPC calculates the $500k limit by account type. A traditional IRA and a Rollover IRA are the same type so the two account balances are combined when determining the $500k threshold. A traditional IRA and a Roth IRA are different so an account holder actually has $1 M SIPC coverage. Also brokerage’s have additional insurance by a private company which will insure your account above the $500k limit. Should an account holder rely on this additional private insurance?
An estate checking account that has two executors under an EIN number. It has over $250,000. Is each executor covered for 250000 or just a total of 250000
Loved the information covered in this video with risk to our money market account, brokerage account in the event of a brokerage going bankrupt. Thanks
Are estate accounts insured differently or for higher limits? We are the executors and need to be sure the estate account is insured while we are assembling the assets for distribution?
I’m seriously confused! I utilized the calculator and found that my POD accounts were not all insured. If I added just one beneficiary (POD) to each account they were not insured. But, if I added 2 Bennys, to each account they were insured. Account is $18,000 over. I thought adding a beneficiary would give me additional insurance.
pls talk about buying CDs from brokage account, like Schwab. If I buy multiple CDs from different banks within Schwab, each CD is less than 250k, are all of those CDs covered from FDIC?
I don't get it. I went to the FDIC's calculator, selected my bank, and added two accounts. One checking, one savings. Indicated that I had a POD beneficiary on both accounts (same person on both). I set balances as $250K on both accounts. Calculator still indicates that I have only $250K of coverage.
I tried the calculator and it does not give additional coverage if you put in an individual account with a beneficiary. Does not make sense to open 2 accounts one without and one with a beneficiary. What happens to the account with no beneficiary upon your death? Also does POD include the bank going under? Makes more sense to just break up the account into 2 banks with beneficiary's.
I learned that lesson the hard way while living in Cali you do not keep a lot of money in your checking account you will wake up one day and your money will be gone always keep a savings account
Put the excess in t-bills. They are liquid and if you rollover a short ladder, you get better than money market yields at very minimal duration risk. Very liquid. That way your money stays in one place.
Easy for married couple to have $1 million FDIC insured in single bank. Each spouse with individual account(s) up to $250k per spouse and also joint account(s) up to $500k.
If I purchased the bank CD through broakage firm and don't have any account in that bank, is my CD still covered by FDIC (or how FDIC return my money if I don't have any account or personal informaiton in that bank?)
Rob, or anyone else in the know: if your beneficiaries have their own accounts at the same institution, will their own savings count towards the limit and reduce the amount insured in your own account in their name?
Rob, congratulations on 100,000 subscribers, I'm pleased to be one of them and to be a recent joiner, and a CPA by training. This is my first time commenting on almost any RU-vid post. My question is on risks of collapse of an HSA vendor. With all this talk about bank failures, FDIC insurance, NCUA insurance (credit unions), SIPC insurance (investing custodians stealing or losing assets in their care), government rescues more generally, please consider commenting on and/or covering your take on what would occur if an HSA provider failed. Should, for example, choosing an HSA vendor -- assuming you have any influence on that with your employer -- be a factor in your risk management and if so how much and what are the considerations?
I bank and two different banks and I've asked the banks this very question, I've never gotten the same answer. Now I know! The banks guided me in the wrong direction and should they close their doors I'm a loser. Thanks Rob Berger not only telling me but showing me how to have my bank account named.
maybe some of the depositors knew this on the recent failed banks(but I heard they were businesses). There were lot's of accounts over the $250,000! Did not matter anyway as the Fed stepped in!
As a foreign investor. It's a bit scary rn. Still insured but being overseas makes it a bit worrying Also i dont remember filling a form for inheritance. Is it automatically set for my family in case of death ?
For banks, no, you have to add beneficiaries and most banks make you do that in person. Not sure how that would work for you if you're overseas. For your brokerage accounts, you should be able to add your beneficiaries online or over the phone. If you can't do either, you need a will &/or trust. I'm not a financial advisor or estate planner but that's what I know. Good luck.
While it's easy for people to blame the banks, the CEOs, the current administration, the previous administration, the Fed, the Martians, whatever, it's actually the people. Herd mentality and mob rule led the people to bring down their own bank. Very few banks, if any, could survive a full bank run. The new unlimited FDIC insurance for all depositors at SVB is a great idea today that will likely become a terrible idea tomorrow.
