FDIC Insurance valid
My mom recently passed away and left me $400,000. This is currently sitting in a savings account in a big bank. I know it should be invested but for right now, since the money is insured by FDIC at this bank, for up to $250,000, should I move the $150,000 to another bank?
Terry Says
Yes, I’m not worried about banks, but there is no reason to be above the insured limit. It means in case of a failure, you’d be above the insured limit and your account could be caught up for a while. So just have some wired to your name in an account at another bank — leave it in a money market account there or a one-year CD.
Actually, as an even better idea, you might want to purchase Treasury bills directly from the Federal government. Here’s an article explaining and it’s very easy to do.
You could purchase $50,0000 or $100,000 at a time, with the money automatically taken out of your checking account. Do it two weeks apart, until you’ve put at least $200,000 into your online TreasuryDirect.gov account. The interest goes back into that account when they renew in 3 or 6 months. The rates are low, but this is ultimate safety.
