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Posted: 1/31/2006 4:56:22 PM EDT
[Last Edit: 1/31/2006 4:58:16 PM EDT by cheaptrickfan]
So the FDIC insures accounts up to $100,000.00 - right?

So, lets say Joe Blough wins 25 mil in the lotto and puts it in a savings account, bank gets robbed (electronically or physically) and the 25 mil is gone. Joe Blough is now out $24,900,000.00 right?

Lets say Joe Blough takes that same 25 mil and opens 250 savings accounts with 100k in each account, and has the interest from each account placed in account #251 - would ALL of his money be safe?

Link Posted: 2/1/2006 10:37:57 AM EDT
If Joe is dumb enough to put $25 million into savings accounts earning 1%, then he deserves to lose everything if the bank fails. That much cash should go into to 90 day t-bills.

Also, the FDIC only covers bank failures, not theft. If the bank got robbed somehow, the bank's insurance would cover all losses.
Link Posted: 2/2/2006 5:25:35 AM EDT
[Last Edit: 2/2/2006 5:27:20 AM EDT by Waldo]
I remember reading a blurb in the business section a while back that some banks have mutual agreements with other banks to somehow layoff large deposits with each other to get around the $100K limit . (Sort of like a bookie does with bets)

Sorry, I can't recall the term or the details.
Link Posted: 2/3/2006 10:59:30 AM EDT
If you title the accounts differnetly you can get 100k per account. Husband, Wife, husband & Wife. 3 accounts, 3 100k limits.
Link Posted: 2/3/2006 2:21:48 PM EDT
I remember reading somewhere that if you sink like a million dollars into an account, you would have to purchase your own private insurance to cover any losses if there's a run on the bank.
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