How To Be Proactive About Protecting Your Savings Account
Banking 2023: How To Be Proactive About Protecting Your Savings Account
Heather Taylor Wed, March 29, 2023
With recent bank failures headlining the news cycle, many customers might be worried about their funds. The good news is there is a lot of protection provided to banking customers, no matter the dollar amount of your financial assets. Here are a few proactive steps you can take to protect your savings account and insure your deposits.
Review FDIC Coverage and Resources
You might have noticed the fine print for your bank states it is FDIC insured. What does this mean?
Glen Goland, CFP and senior wealth strategist at Arnerich Massena, said FDIC (Federal Deposit Insurance Corporation) coverage has ensured depositors for 90 years that their funds would be available. This is regardless of what is happening in the financial world or to one’s bank.
FDIC coverage applies to up to $250,000 in deposits. This is per depositor, per insured bank. Different coverage amounts are afforded to trusts and other legal entities.
For those who want to insure their deposits, Goland recommends visiting FDIC: Resources. The resources page provides a listing of ownership categories and applicable coverage amounts. Goland said this should give banking customers a sense of how much coverage they have and how much may be outside this coverage and at risk.
Open Accounts With More Institutions or Put Assets in an Investment Portfolio
There are a few moves banking customers can make if they are holding more than $250,000 in bank deposits.
Goland recommends opening accounts with multiple institutions. This can help keep deposits under the $250,000 threshold. Banking customers also can look into using a Cash Management Account (CMA), which functions like a traditional bank account but spreads your deposits across several partner banks for additional protection.
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https://finance.yahoo.com/news/banking-2023-proactive-protecting-savings-190439034.html