![Simple ways to insure excess funds [Photo: GOBankingRates]](https://omdnews.com/wp-content/uploads/2023/09/GOBankingRates.jpeg)
If you have over $250K saved at one bank, it is time to reevaluate the safety of these excess funds. There are some reasons why banking customers need to conduct this evaluation. Learn the best ways to insure excess deposits that you may have.
![Best ways to insure excess deposits [Photo: Bankrate]](https://omdnewsnew.s3-accelerate.amazonaws.com/2023/09/Bankrate.jpeg)
Best ways to insure excess deposits [Photo: Bankrate]
Simple Ways To Insure Excess Deposits
SOURCE– If you have over $250,000 deposits at one bank, it is time to reevaluate the safety of these excess funds. There are some reasons why banking customers need to conduct this evaluation. The first is to keep your savings in compliance with FDIC insurance standards- this insurance protects up to $250K per depositor at the insured banks for each account ownership category. The second reason is some banks can fail, the savings expert Ben McLaughlin said that if a bank fails to hold your money, you will only be insured for the first $250K you have at that bank- if the bank fails you may lose any funds over this amount.
Ben McLaughlin recommended moving the excess cash to a savings account at a different federally insured bank. You can spread the money out across several distinct insured banks by keeping $250K from one insured bank to another insured bank and so forth.
A finance professor, George Pennacchi, said that there are different types of ownership accounts that are eligible for the $250K limit- such as single, joint, and retirement accounts but you need to meet specific requirements. Opening these accounts may best way to receive coverage for excess funds.
READ ALSO: Fresno Apartments For Rent- Don’t Take The First Offer
