5/23/2023 0 Comments Stretch and fresh![]() Both banks were participants in the IntraFi network, which allows customers with high cash balances to spread their cash among multiple institutions and stay within FDIC limits, according to a person familiar with IntraFi. In fact, the banks’ recent troubles “show that there has always been risk for those who go over the FDIC limits, and it very much makes sense to ensure that your deposits are within” those limits, said Ken Tumin, senior industry analyst at LendingTree.Īmong many customers of SVB and Signature, the availability of additional deposit insurance coverage may have been overlooked. “I wouldn’t stake $10 million of cash on the idea that the government will keep doing this for every bank that fails in the future.” Silicon Valley Bank, for example, had a unique clientele that was “loud and forceful in advocating for themselves,” said Ben Henry-Moreland, owner of Freelance Financial Planning in Omaha, Neb. Treasury Department and Federal Reserve said in a statement yesterday.Īlthough customers with balances beyond the FDIC limits are being made whole in this instance, savers shouldn’t count on that happening the next time a bank blows up, financial planners say. ![]() Depositors in both banks will be fully protected, the FDIC, U.S. Yet a large chunk of deposits at the two failed banks were beyond those limits. Each depositor at an insured bank generally gets up to $250,000 of coverage per account ownership category–individual and joint accounts, for example, are separate categories. Has raised new questions about the limits and significance of Federal Deposit Insurance Corp. At MaxMyInterest, which also helps customers spread their cash across multiple banks and earn above-market rates, site traffic in the past few days has been five to 10 times its normal level, said CEO Gary Zimmerman.įor savers with large cash balances, the failure in recent days of Silicon Valley Bank
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