How to maximize FDIC insurance on savings account?

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GordonG
Posts: 64
Joined: Mon Mar 23, 2015 2:24 pm

How to maximize FDIC insurance on savings account?

Post by GordonG » Thu Jun 27, 2019 2:45 pm

I've done some reading, but I'm still a bit unclear. It sounds like I can get extra coverage by adding beneficiaries to my account. In order to get $500K worth of coverage, would I need to have 2 beneficiaries listed on the account? Anything else to do?

Another option seems to be making it a joint account, then I'd get the $500K worth of coverage, right?

I called my bank (Marcus/Goldman Sachs), and the customer service rep was extremely unhelpful. She basically said, we don't know anything about FDIC, you'd have to call them. She then offered to transfer me, I agreed, and the of course I get "this number cannot be connected as dialed." Pretty peeved at this level of service considering I have a large chunk of cash stored with them.

Clarice
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Location: Orlando FL

Re: How to maximize FDIC insurance on savings account?

Post by Clarice » Thu Jun 27, 2019 9:21 pm

Max My Interest

anon_investor
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Re: How to maximize FDIC insurance on savings account?

Post by anon_investor » Thu Jun 27, 2019 9:53 pm

GordonG wrote:
Thu Jun 27, 2019 2:45 pm
I've done some reading, but I'm still a bit unclear. It sounds like I can get extra coverage by adding beneficiaries to my account. In order to get $500K worth of coverage, would I need to have 2 beneficiaries listed on the account? Anything else to do?

I do not think adding beneficiaries increases your FDIC coverage.

Another option seems to be making it a joint account, then I'd get the $500K worth of coverage, right?

Yes, this would double your coverage.

I called my bank (Marcus/Goldman Sachs), and the customer service rep was extremely unhelpful. She basically said, we don't know anything about FDIC, you'd have to call them. She then offered to transfer me, I agreed, and the of course I get "this number cannot be connected as dialed." Pretty peeved at this level of service considering I have a large chunk of cash stored with them.

Try this tool: https://edie.fdic.gov/calculator.html

Topic Author
GordonG
Posts: 64
Joined: Mon Mar 23, 2015 2:24 pm

Re: How to maximize FDIC insurance on savings account?

Post by GordonG » Fri Jun 28, 2019 7:18 am

According to Ally Bank, each beneficiary I add to the account gets $250K of coverage, so 1 beneficiary = $250K covered, 2 = $500K covered, and so on. This is because it becomes a payable upon death (POD) account. This seems to jibe with the tool on the FDIC site

Alan S.
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Re: How to maximize FDIC insurance on savings account?

Post by Alan S. » Fri Jun 28, 2019 8:04 pm

GordonG wrote:
Fri Jun 28, 2019 7:18 am
According to Ally Bank, each beneficiary I add to the account gets $250K of coverage, so 1 beneficiary = $250K covered, 2 = $500K covered, and so on. This is because it becomes a payable upon death (POD) account. This seems to jibe with the tool on the FDIC site
Correct, and the portion for each beneficiary does not have to be 50%. You could list one for 99% of the account and the other for 1% if the bank accepts that. YOU are still covered for 500k.

anon_investor
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Re: How to maximize FDIC insurance on savings account?

Post by anon_investor » Fri Jun 28, 2019 10:35 pm

GordonG wrote:
Fri Jun 28, 2019 7:18 am
According to Ally Bank, each beneficiary I add to the account gets $250K of coverage, so 1 beneficiary = $250K covered, 2 = $500K covered, and so on. This is because it becomes a payable upon death (POD) account. This seems to jibe with the tool on the FDIC site
Interesting, learned something new... now I just need to $500k!

Topic Author
GordonG
Posts: 64
Joined: Mon Mar 23, 2015 2:24 pm

Re: How to maximize FDIC insurance on savings account?

Post by GordonG » Wed Jul 17, 2019 7:49 am

Alan S. wrote:
Fri Jun 28, 2019 8:04 pm
GordonG wrote:
Fri Jun 28, 2019 7:18 am
According to Ally Bank, each beneficiary I add to the account gets $250K of coverage, so 1 beneficiary = $250K covered, 2 = $500K covered, and so on. This is because it becomes a payable upon death (POD) account. This seems to jibe with the tool on the FDIC site
Correct, and the portion for each beneficiary does not have to be 50%. You could list one for 99% of the account and the other for 1% if the bank accepts that. YOU are still covered for 500k.
Awesome. This was actually easier than I thought. Thanks for the confirmation :beer

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