Ask Terry Questions FDIC insurance coverage on bank savings accounts

FDIC insurance coverage on bank savings accounts

By Terry Savage on January 23, 2025 | Chicken Money

I have a large balance on a bank savings account that is listed under my living trust with my two daughters as surviving trustees. I was told several times by bank employees that since there are three of us on the trust, the max insurance would be three times the $250k or 750k. Now the bank manager says that only the trust is insured for $250k. Thank you for any clarification. Should I open additional accounts if necessary?

Terry Says

I don’t think you should keep that much money in any one bank, regardless of the technicalities!
Read this: https://www.terrysavage.com/t-bills-beat-cds-2/

I suggest you use this information to open an account at TreasuryDirect.gov (as described in the article) and open an account in the name of your Revocable Living Trust, using your own Social Security number. It is an account directly with the U.S. Treasury — the safest thing on the planet. You can stagger purchases of 6-month T-bills, buying some every two weeks. And designate automatic renewals.

Since it is in the name of your RLT, you don’t need to name beneficiaries. At your death, or if you are incapacitated, your successor trustee can act to redeem or renew the T-bills as they mature. The interest should be deposited into the bank account in the name of your trust.

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