I read this Economist article today about the author going to his bank and asking about FDIC coverage on his account. When he saw that he had too much to be covered completely, he considered moving the excess to another bank. The banker finds a legal way to keep all his money with them, entirely covered. But he wonders whether such maneuvering will stand up if the financial market mess gets any worse. He writes at the end:
My first instinct is one of aversion…there’s no way that would ever happen! Your money is your money, and if it’s in a legally titled account, it’s covered under FDIC. Period.
I work in a bank, and I’ve gotten an insane number of questions on whether money is covered and how accounts can be opened and titled so more can be covered. I know there’s a lot of turmoil out there, and some giant companies have failed…but we shouldn’t have to ever worry about our covered assets, do we?