FDIC insured Question.?

Question

How do people who have lets say a million dollars in their bank account take this risk if the bank is only insured to pay back 100,000?

To my knowledge the bank is only insured to pay back each person 100,000 if they go under or something happens. So if I had 1,000,000 sitting in my account I lose 900,000?

Answer 1

I believe the FDIC insurance limit is $100,000 PER ACCOUNT.  A married couple could have $100K in his name plus another $100K in her name plus $100K in a join account plus a trust account etc.

They could also have accounts in multiple banks

More likely, a millionaire would have some in a bank account and some in other investments like stocks or bonds (not covered by FDIC insurance.

In reality, large banks rarely fail and when they or other banks fail, it is even more rare for a DEPOSITOR to lose money.  Most often another bank take over the deposits thus the depositor do not lose anything.

Go meet with a financial professional and PLAN out your future.

Good Luck.

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Answer 2

A good part of this kind of money would best be put into something like an annuity which may grow, tax defered. Annuities are more secure.  No insurance company has defaulted on an annuity in the US.  The insurance industry is significantly stronger than the banking industry... that's why banks have begun selling insurance...

Answer 3

probably yes.

Most people who have $1,000,000.00 do not have it in the bank.  They may have some but mostly it is invested ,in the stock market , in their  business or some other instrument where they will make a better rate of return than a bank.

Answer 4

what ever yo;u choose