What Happens to Our Investments if Schwab, Fidelity or Vanguard Collapse?

[@BuceGar]

As someone with a brokerage account at Charles Schwab, this was excellent information, thanks for making this video.

[@CynthiaArmstrong7]

Sir, your channel is a Godsend. I have been so worried about my money in my checking account at Schwab. I had no idea it was insured. This is a great relief. I am happy to subscribe. Thank you.

[@lincolnbutler8051]

Thank you very much for preparing this video. I was one of the people who asked you to do this. Kind regards Lincoln

[@SF-fb6lv]

Thanks for the video! When I asked these questions of the firm that our 401k accounts are in, the woman I spoke with said "You are the first person I've had ask these questions." The first two representative I spoke with hadn't heard of SIPC or thought it was SPIC; I don't know why they were even working there. Scary.

[@belangp]

Good video. All ETF's and mutual funds (including money market mutual funds) are governed by the Investment Company Act of 1940. It requires each fund to be a separate corporate entity with its own management and also requires all assets to be held in a trust with an independent custodian. It's a beautiful thing.

[@gorkushka]

what about CITs? My understanding is that a Collective Investment Trust is owned by a Bank but are For the Benefit Of the shareholders.

[@Thirrtyeighterr]

Beautiful thing, yes!

[@LeadfootJustice]

Both can borrow from one fund to meet redemptions in another fund As long as they're in the same family. Pronounced: "counter party risk"

[@timothythompson4036]

This was a great video. This is the reason I would never put myoney in those new fintech banks. Several of the custodians have failed snd people have lost everything.

[@maxplank4083]

Excellent video. You are the fist person to explore this subject. These questions are becoming increasingly more important in an increasingly risky financial world. The majority of us do not really know how safe our money is.

[@brekkenhughes8703]

It's always a pleasure to have you here as a mentor, i learn a lot from your videos, and it has helped me in decision making, particularly in the financial sector.

[@corneliuswowbagger]

Happened on this by accident, but it is information I was seeking and things are pretty much as I thought. Thanks for the reinforcement. I am definitely subscribed from here on out! Thank-you!

[@MonteRosa849]

Thank you very much Mr. Berger for unpacking a very complex matter and explaining it in simple, understandable terms. 🎯

[@michaelevans5328]

Super helpful. Thanks for cutting through the noise and making a complicated subject understandable. Although I think my money is relatively safe at a bank or brokerage, I do worry about temporarily losing access to my money due to solvency issues, hacking, cyber attacks, fraud, or a simple misunderstanding. So perhaps maintaining cash accounts at multiple financial institutions would be a good idea.

[@joseCalderon1976]

You also have to have a few thousand dollars in cash somewhere accessible just in case the banks run out of cash all of a sudden

[@bobbyd6680]

​@@joseCalderon1976 Except it is becoming a cashless society.

[@117775EM]

Excellent overview Rob. This is precisely the type of information needed several weeks ago so that depositors would not have behaved out of fear and moved deposits from SVB. Any banking system, especially our with rules, regulation and oversight (some may say were asleep) requires confidence in order to remain a solid institution.

[@joythought]

The majority of deposits in SVB were not protected by FDIC insurance and the valley is a tiny community connected on Twitter so this kind of inevitable if there was anything that spooked them they all had the responsibility to grab their money and run for the hills.

[@jameswood9772]

Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?

[@disch972]

Thanks Rob! You're more informative than all the talking heads I listened to this week!

[@csg6262]

Great video and explanation. My employees were just asking me about this today. You did a much better job explaining it than I did. It's almost like my phone was listening. Hmmm...

[@kaseylv922]

This is something I always worried about with our brokerage firm, knowing they weren't FDIC insured. You gave me great peace of mind - thank-you!

[@George-u1v]

How can I make good profit as a beginner starting with $6,000 ~ir5

[@Dominic-y6e]

As a beginner, it's essential for you to have a guardian to keep you accountable. I'm guided by Amanda Katherine Nakitare

[@Elijah-d2l]

I racked up so much losses trying it on my own. Amanda really saved me from myself

[@Eleanor-d8h]

Finding someone truly skillful is hard. I'm happy to see that a lot of people found Amanda

[@FelixThompson-h4d]

Same here. Amanda managing myportfolio was my best decision. Gotten more than half a million since

[@Fiona-v9p]

Amanda is a life changer. Through her I went from almost homeless to being a home owner

[@msisles6278]

Your investments are protected under rule 15c3-3. The clearing broker is required to do a reserve calculation and set aside funds in segregated account. In addition, under the rule a daily possession or control calculation is done daily to ensure fully paid and excess margin securities are under the control of the broker. Any segregation violation and the broker must act to reduce the violation.

[@schnoonsdad]

A very helpful & lucid explanation. I would add two thoughts. When considering the potential for worst case situations, on the order of "what if Schwab or Fidelity goes under?", I would suggest that if things got that bad we all have bigger, more dire problems to face than what is our money is worth (like literal blood in the streets). Possible, but highly improbable. I also would mention a sort of market risk that comes with some investment vehicles and that played out during the 2008 debacle. That would be that there is a delay, sometimes significant, before you can get your money back. The old maxim about not putting all the eggs in one basket becomes especially apropos if you are likely to funds for expenses, or are disposed to taking advantage of marked down asset prices such as we saw in 2009.

[@speedysplit]

Thank you so much for educating us Mr. Berger. We changed our brokerage from Schwab to Fidelity in lite of all the recent news about Schwab. Our fears were unfounded. Well, we will just take advantage of fractional shares and automatic investing on ETFs offered by Fidelity and not by Schwab.

[@EricMcDowellegm]

Thanks so much for this video! I have funds in Schwab and Fidelity so your words were reassuring. New subscriber! Glad I found you. 😊

[@jimm2442]

Finally some good information rather than click bait doom and gloom. Thank you, I am now one of your many subscribers.

[@bencheung2407]

Excellent information! You just clear up the cloud in my head in the past week on my concerns on the assets at the brokerage accounts due to the recent banking fallout. Thank-you!!!

[@davidb2206]

The SIPC, which is supposed to protect brokerage accounts, is a private, federally mandated nonprofit organization. It has a $2.5 billion line of credit with the U.S. Treasury. The U.S. government $34 trillion in debt.

[@briandarnell1809]

Thanks for the timely information. My wife was just asking about all the money we have with Fidelity and you saved me a ton of research time.

[@PH-md8xp]

The big brokerage houses are Too Big To Fail (TBTF), the government would have to step in with “extraordinary measures” to prop them up, acquire them, or whatever it takes to keep them afloat like they did during the Great Recession.

[@dorothymartin8557]

The only problem is that the government is broke, to the tune of over 35 trillion.

[@mattlv2002]

Thank you for this great explanation. Here is my question. If Schwab is keeping my money market deposits in SWVXX separate and not loaning that money out or investing it, how are they paying me a 4.47% yield?

[@jdratlif]

That fund is an investment, just like a stock or ETF. They're just "safer" investments, so in the last 7-day period, they paid 4.47%. They didn't loan the money, YOU invested it, and they managed the underlying investments.

[@FoursideAssetManagement]

There is another risk element to the basic money market fund which the average brokerage account is built upon: bond credit risk. If US Treasury Bonds should ever default, it would jeopardize the integrity of millions of brokerage accounts that are constructed through short term bonds. Since we are ever closer to a debt ceiling and our bonds are slowly yielding less, this risk grows in my opinion.

[@joekuhnlovesretirement]

Congratulations on reaching 100,000 subscribers. 100% high quality content.

[@rob_berger]

Much appreciated!

[@jarthurpaxton9223]

Excellent. Couldn't have been better done. Clear, concise, and substantiated by documentation.

[@cedomirdzunic5194]

How unbelievable it is to me that this is a free content. Fantastic work sir! Thank you so much for putting all this together!

[@ericmcdonald7313]

Well said. I am a 30+ year RIA of my own firm and have been answering this question over the past week. Appreciate your description.

[@bdietz2]

Congratulations - you are a great teacher and your explanations in this video were simple, direct, and easy to understand. Anyone can make things sound complex, but it takes work to explain something in clear, simple terms. (BTW I'm in my 70s and remember reading about the basics of investing when by grandmother was buying stocks and I was in high school. What I learned then has always been helpful. I'll subscribe to your channel.)

[@DesertRat332]

I was in TDAmeritrade. Then Schwab bought them out. I'm still nervous. I think I need to pull out of Schwabb. My account is 10% lower than it was 3 years ago, even though the market bounced back and is now at an all time high.

[@mrbigglesworth375]

I recently was told it would be a good idea to remove my margin account status within my brokerage account. I did so as I don't use it anyhow. But the reason as I understand is the margin status somehow allows the brokerage to lend my share out to others, which could complicate things depending on who was borrowing those shares. Maybe I am over reacting but I did notice that my account now shows "your shares" statement on each position. Just food for thought. I use Vanguard BTW.. love them.

[@JimPoole-u4t]

Excellent explanation of the difference between brokerage firms and banks and how they work. Important for all investors to know.

[@tmangeles7575]

Thank you. I called Vanguard and asked this question and they never responded. Subscribed and upvoted.

[@miketracy9256]

Stock funds are ownership in companies. Bond funds are risky investments when interest rates increase. Treasuries longer than 2 years are exposed to increased risks and any incompetent banks that invested in 10-year T Bonds since 2000 were unwise. The 250K limit should never be increased. It used to be 100K.

[@norbertruijling6763]

Better 'style' would be to answer the questions right away, and then explain. Now I have to listen to the entire video to get the answer.

[@w1swh1]

Thanks Rob. That's very reassuring as I have mutual fund assets in Schwab, Vanguard and Fidelity. As you said we don't want another Madoff!! I've watched the Netflix documentary twice now and it still sends shiver down my spine (where was the SEC?)

[@vincepoy2]

One thing you didn't cover is with Brokerage Accounts using Schwab for example, they have something for univested cash which depending on the broker, can either be a Money Market Fund or it goes to a FDIC account. For the former, that would be covered by SIPC insurance while for the later, it is under FDIC insurance with the bank it went to but in both cases, the FDIC Bank or the SIPC Money Maket Fund would still be investing that money however they want.

[@rob_berger]

That's my understanding as well.

[@tomatden]

I had this exact question as well, and here’s another wrinkle. Say I have a regular brokerage account with Schwab, a traditional IRA, and an inherited IRA also with Schwab. Does each account get 250K of coverage (for a total of 750k of coverage)for uninvested cash, or is the combined total of uninvested cash in all 3 accounts only covered by 250K? Thanks in advance, super helpful channel!

[@SimpleAbundance]

@@tomatden I don’t have the answer but my understanding is per person per type of account, I think you’d qualify for 500k, . I’d call them, I’m really curious what the answer is. An Ira is an Ira imo but the term “inherited “ is throwing me off as I’m not familiar with trusts and the other nuances of inheritance

[@hanwagu9967]

SIPC and FDIC do not do the same thing, so you shouldn't consider that SIPC is to brokerage securities and cash as FDIC is to deposit cash. SIPC covers "cash" in your brokerage cash/sweep/clearing account, because they are still considered securities being normally held in money market fund accounts. FDIC covers dollar for dollar in case of bank failure up to the limit. SIPC does not cover dollar for dollar in case of brokerage failure. It covers in case of loss, theft, or fraud. It covers the cost to repatriate your securities, or securities held as cash (e.g. cash in your money market fund sweep account) in non-commodity related cash accounts. In the case of brokerage money market fund, no, the brokerage is not investing the money however they want. You know what the money is being invested in because it is in the underlying money market mutual fund. It is booked as such, that's why it is considered securities and not covered by FDIC even though it is "cash".

[@ThumperX9]

Such a good posting...I'm sure many people had the question "what would happen to my investments if say a Vanguard went under?" Thank you for explaining the separation between the investment firm and custodian.

[@ponzianomanning3071]

I feel more at ease with my stock and money market acc. at Fidelity. Thank you!

[@Aspectus]

My biggest concern is that I make the right call on a trade, but then they reverse the trade or don't pay out. Ask those who owned Puts on Signature Bank or Silicon Valley Bank.

[@rogerdodger8415]

The FDIC can insure against only a small portion of the countries banking system deposits. It's like your home insurance. If your neighborhood burns down, they can cover it, but if the entire city burns down, there's just not enough to cover it all.

[@rickspalding3047]

I'm not sure how a system collapse would happen but if that happened, that's all on the tax payers

[@freeroamer9146]

Interesting as well as reassuring! Good to know there are checks and balances in place to protect investors. 👍

[@jamescurnutt1628]

Hhhmmmm.... my wife and I are down 100k in our employer sponsored Vanguard 401k since last June 2022. $25,000ish just this week. Essentially every dime the last 3.5 years is gone.

[@fij7963]

Thanks for the clear explanation Rob! Along the lines & probably for another video, I would love to hear (& learn) from your take on protection on "annuities" against these institutional failures.

[@melissanative1799]

YES, I CAN'T BELIEVE NOBODY IS TALKING ABOUT THEM.

[@douglaslitke6794]

Money I have at Schwab that is NOT invested goes into Schwab bank. (or their second bank, Schwab Premier Bank).

[@billrailsback5176]

Excellent- it´s all about "Segregation of Assets". Brokerage firms keep our assets apart from theirs, whereas Banks (And Life Insurance Companies as I understand) Do NOT. Cheers

[@MrHardrock]

ok!!!!! found you here!!!! Glad to see you back on your own channel. Great info today!!!! Totally slipped my mine that CS is publicly traded just like a normal bank or company.

[@user-jy7yw5kw3w]

I think Vanguard would be the last one standing since it’s owned by its members. Wouldn’t it then take all its members to withdraw at once for it to fail?

[@shortyofshorts1249]

You’re right, Vanguard is a very strong and reputable company. Us that invest in their ETFs support them and reap the great/ stable return ratio.

[@spencerwinston4334]

With a Marxist tyrant Brandon Biden, all investments are dicey as Marxists do not adhere to Constitutional property principles. Tyrants tyrannize that's what they do by definition. The Marxists are snakes and reptiles of the lowest order. Biden would nationalize a piggy bank in a church in a New York minute as this obvious degenerate tyrant is raiding the free market citadels like Ghenghis Khan Marx on a holiday rampage. Vanguard and others with SVB as emblematic are so "woke" at the top, the Marxists are looking to change the drapes at Vanguard HQ to Crimson Marxist red. Never, never, never, never, never, never turn your back or guard on a Marxist. Be careful please everyone, the Marxist tyrants are pervasive even in seemingly "safe harbors."

[@lasalsera-x8d]

I think many of us now worry if our bank fails, will FDIC have enough money to cover after those banks failed and there might be more to come? I recently moved a big chunk of cash from my bank to my brokerage account. I needed to split my cash to keep it under $250K but also I wanted the money to be in a safer place. Someone told me brokerage accounts were safer than banks because they have more strict regulations. Is that true? Brokerage account, I mean is non-vested, just parked as a cash value.

[@bigpicturethinking5620]

You need to check how the “core” or “home” position is held in your particular instance. Many have sweeps which break out cash deposits to keep you below the $250 k threshold and some core prepositions are purchased funds and not deposits at all. Bottom line is there is no generic answer. Check your own brokerage to see precisely how your money is held.

[@randycarstens1100]

Good question I know for Robinhood cash is invested with several banks and fdic insured. Schwab is FDIC as well not SIPC. I am converting my Schwab Tbill ETF to actual Tbills that are reinvested automatically at maturity. Think this is safer as to avoid possible losses from derivatives and shady stuff at ETF.

[@randycarstens1100]

Custodian SVB LOL’s.

[@andrewdillon3520]

Just to note, FDIC may not have enough to cover all so lost funds will not be returned all at once rather it will most likely give back in installments depending on how great your losses are they will drag it out till the day you die and you will never recover everything.

[@bigpicturethinking5620]

@@andrewdillon3520 Lol ok get to your bunker quickly with your cash.

[@LeadfootJustice]

Mutual fund and ETF companies have the right to 'borrow' from one fund to meet redemptions from another fund. This became necessary when indexing drove fund cash balances from ~2to5% down to 10-20bps. This essentially means that any etf or Mutual fund you 'own' has distinct counterparty risk.

[@nicholasmartinez6043]

This was the perfect video for my questions: thank you. I’ll continue to keep my cash in a vanguard money market account for the higher yield vs a bank account

[@sheldonhall1295]

Excellent explanation of the management of funds. This week, I had been wondering about my retirement funds. Thank you!

[@johncotton7058]

What about uninvested cash at a brokerage? Its swept into an account usually set up by the brokerage. Is that account FDIC or SIPC? Thanks, great and timely video, of course.

[@MaryBethMcCoy]

FDIC insured like a regular bank up to 250K.

[@rufuspipemos]

Vanguard does it best... when money comes over it automatically lands in a Government Money Market first, so it never sits in cash.

[@Alumnikiid]

SIPC protects the securities and “cash” in your brokerage account up to $500,000.

[@hanwagu9967]

@@MaryBethMcCoy no. it depends on what kind of sweep account.

[@mikephilpot9857]

Very important topic. Thx for the video. 👍

[@janesmith506]

Thanks for answering these questions. I never thought of asking them, but it's good to know the answers.

[@harinair7066]

Thanks for making this video Rob! Question: Would we be protected if the custodian bank fails?

[@drrwatcher]

Thank you for answering a question that has long been on my mind.

[@boriskasperov7718]

Thank you for taking the time to record this video. It was educational and reassuring.

[@lcdrpost]

Outstanding video! This answered most of my questions. Thank you for taking the time to research and create this video.

[@smb-zf9bd]

I used to ask such questions, "What if the Dow went to zero?" "What if the banks failed?" "What if the dollar collapsed?" I now know if any of these happen there is not a thing to do. Cash won't matter and neither will bullion since food and safety will be the primary concern. All those panting to return to "Little House on the Prairie" will get their chance to "get close to the land". The one response we will never hear is, "Vanguard collapsed? Oh well, too bad." I guess one option is spreading the risk - securities, property, art, bullion, etc but if we're being honest, if our financial system collapsed few would be debating on the price over the modern abstract in the great room.

[@ckersh74]

Bingo. If Fidelity/Vanguard and the like go under, the whole house is very likely going down.

[@indigoindignation]

Thank you, thank you! I've been searching for the answer to this question for years! Finally I can breathe easier.

[@IrfanKhan-mx6fl]

It is very simple; a Bank physically holds your cash, a broker is an intermediary that holds your investments…it is physical cash vs holding your investments. If the broker fails, you still have your investment, if a bank fails, your cash over FDIC limits is in jeopardy!

[@SportsIncorporated]

What I know about FDIC insurance goes back some years. The way it used to work was FDIC insurance wouldn't cover more than a major bank or two going down. In other words, FDIC insurance couldn't insure the whole system. (Of course, the government has stepped in.)

[@Nernst96]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

[@DreamBelieveTravel]

Thank you so much this is exactly what I was looking for. I have a Schwab account and a checking account and I bought a bunch of CDs. But it’s over 500,000 so I was concerned if they went under because their stock went down severely. I think it was last week. Thank you.

[@pejpm]

For context, their stock is still higher than it was 3 years ago

[@NewPragmatic]

Excellent explanation of SIPC. Highly recommended viewing for anyone with brokerage concerns (basically rest easy, but watch).

[@maxlittle1063]

What if you open a Schwab brokerage account (not a Schwab bank account) and put money in it, but just let it sit there and do not invest in anything or buy any shares? How is that money protected?

[@darylwhetstone3959]

Excellent information provided!! Thank you for putting this information together for those of us that are not financial wizards, and lack a lot of understanding of the financial world.

[@pgreenx]

All broker dealer financials are publicly available even if they are private companies. In fact, the broker dealer financials are separate from the non bd portion of schwabs books. Plus you have credit risk with a bd until trade settlement.

[@wealthhacker]

Great video!

[@CTChipmunk]

problem is if there are massive bank failures the FDIC only has something like $300 billion on hand to cover something like $9 trillion in deposits.

[@PLeejo]

They keep it separate by putting those monies in BANKS. THEIR bank can go stupid. Some of OUR brokerage account cash is in Wells Fargo. Not feeling secure.

[@z352kdaf8324]

That's were some brokers get in trouble - they don't keep things separate. And Schwab owns TDA now. ugh

[@GenXstacker]

This is an excellent question which has popped into my mind since most of my portfolio is at Vanguard.

[@nicholastracy4915]

Hold assets outside the system. Be your own central bank. Put a portion of your portfolio into assets that are not simultaneously someone else's liability, which includes Federal Reserve Notes, as you can see for yourselves what little regard the Fed has for the purchasing power of the dollar. Your discernment for what to buy, but I am merely suggesting how to buy. Times of crisis hold great opportunity.

[@Coyotehello]

Just stumbled on your channel. Very nice clear information in this video. I will now have a binge watching rainy Sunday time on your channel...

[@wymandyer6261]

oh Rob you hit a home run on this,,,more than once ive had a bit of anxiety about this and you really confirmed words from some other experts ive talked with and eased my mind,,,thank you

[@rondean2733]

The risk is huge when you can't access your fund! Either by Government, Broker, or general liquidity! Hold physical gold and silver! And save broker fees.

[@markus711]

FDIC has $124.5 billion on its balance sheet, with an additional $100 billion line of credit available from the U.S. Treasury for a total of $224.5 billion. That compares to a total of more than $22 trillion in the US banking system. Therefore FDIC assets cover only 1.26% of the deposits.

[@JK-rv9tp]

This is why all the shareholder documentation sent out by companies or funds comes directly to you. The broker is just acting as a custodian of your shares. If the broker was liquidated, the shares would just have to be transferred to another custodian.

[@sek10128]

Very good, simple, and easy to understand summary. Nice job. Thanks for confirming what I "thought" I knew.

[@tzvassilev]

There is a huge difference between 1) owning a portfolio of stocks and bonds vs. 2) owning ETFs. In the first case, you are only exposed to the specific asset risks. In the second case, in addition to the asset risks (assets owned by the ETF) you will be exposed to liquidity risk in ETF primary and secondary markets and to counterparty risk in ETFs using derivatives and those engaging in securities lending. Personally, I have chosen to own stocks and bonds because there is no doubt who owns what. Also my stocks and bonds are not available for lending to short sellers, everything is under my control. I have no time and no desire to read 50 pages of fine print in ETF prospects. Also don't forget that even if everything looks good on paper you there is always a risk of fraud due to the misconduct of employees of the ETF issuer and potentially gaps in their processes. There are just too many things out of your control compared to the direct investment in stocks and bonds.

[@tajdvl-advocate6113]

Great question that needs to be asked and audited regularly.

[@peternolan6648]

Very good points, however...what about cash at brokerage accounts that might be swept into a cash account at Schwab. I have in excess of $250k in cash. Is that excess vulnerable if it is swept into Schwab banking cash each day. If so, how can I keep the cash in the brokerage and prevent any sweeps? Thanks for your great works from a retired controller/CFO.

[@TheRumblewagon]

The larger question is what if the U.S. dollar becomes worthless? Such as the USA no longer existing? Everything valued in US dollars would also be worthless.

[@autumneagle]

11:50 is this somewhat like what happened with FTX where the two pools of money were not kept separate?

[@me_and_my_dog9670]

Thank you for this show. I have been concerned about Schwab- I don’t have mutual funds but I do have stocks and hoping that I chose wisely.

[@billfrete8487]

Wow thanks this was my question. You answered it wonderfully.

[@Trish.O-q3h]

Thanks for answering these questions.

[@cfh3395]

The reason SCHD is dropping is 18% of its holdings are Financials which includes Regional Banks. You should do a video on that

[@jimdude5529]

SCHD should only be bought for the dividends. Fluctuations are of no concern.

[@vitawater4259]

They have a few regional banks in their portfolio. The brunt of their financials are large cap types, i.e. blackrock, JPMorgan, etc. In addition, the other 82% of the portfolio holdings are doing quite well. Let the divs come in this week.

[@hanwagu9967]

18% drop sounds like a good time to buy

[@HenryD-ou4dk]

No chance at least at Schwab IMO. In 2008 Schwab was one if the few that were fine.

[@jeanettelabarb6521]

Thank you so much for the clear explanation. You have put my mind at ease.

[@agrahazl]

great vid! This is a question I've had for awhile to the point of even holding cash from broker deposit because of not knowing. Excellent job.

[@tonycurran58]

Good information, I was thinking about these questions.thanks.

[@markbolton3352]

Thank you, Sir! You earned a subscriber!

[@summersnow7296]

seems to suggest that for amount above FDIC, it is safer to transfer to a solid broker and either buy money market funds or even just sit there than to leave them in a bank. I wouldn't have known that. Thank you.

[@silvieb2024]

FDIC insurance is a separate 250k for accounts with beneficiaries (separate 250k for each beneficiary), joint accounts, etc. allowing way more than 250k to be FDIC insured even in the same bank. Also, accounts in separate banks are also FDIC insured separately. So, a huge amount of money can be FDIC insured at banks if you do a little research on FDIC insurance.