Are Any Non Mega Banks Safe Enough To Ignore 100K FDIC Limit?

[howzit]

none of those banks will default in the short term. However, you have enough wealth to get financial planning at a private banking arm of one of the major wall st firms. Goldman, Deutsche, Merrill, JPMorgan, UBS.

The first thing they will tell you is that CDs are a joke. and a 5 YR CD is insane. They are illiquid and return less than the most basic of money market funds.

but if you're lazy and OK with returns that can barely beat inflation PRE TAX, it's all on you.

and to answer your questions, any of those banks are fine and don't face any bankruptcy issues. Schwab and BOA are the best names on that list.

[octaveshift]

Correct me if I'm wrong, but doesn't SIPC protection apply for CDs and other securities? At Etrade, it covers up to $500,000 per account, and FDIC covers $100,000 in cash. Additional insurance is available for a small fee, I believe...

BofA is SIPC insured:

" Banc of America Investment Services, Inc. is a registered broker-dealer and member FINRA(The Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation). Both BAI and BAISI are licensed insurance agencies and nonbank subsidiaries of Bank of America, N.A."

[maxtower]

I would make sure you have some governmental insurance. Due to the uncertainty of the current credit environment, you don't want to be left holding the bag if the bank you chose fails. Even some of the big ones are suspect right now. Check out this article.
http://www.bloomberg.com/apps/news?p...d=aEUtlgwzL_qc

What this means is that you either need to open up 10 different accounts for $100k each or buy some kind of supplemental insurance from the bank that you want to use.

One good option might be to open a trading account at a place like Etrade where the bank is connected to the trading account. You invest 500k into a super short term bond fund or similar, and receive SIPC protection up to 500k. Then sweep the interest payments/dividends into your Etrade high yield savings account which is FDIC insured up to 100k. That covers 600k and gives you ATM access to 100k of it through local Etrade ATMs. If you need more than 100k, just sell some of the bond funds that day.

I am not sure of another brokerage that does this, but I am sure one exists. In this way you would be fully gov't insured and fairly liquid with only two accounts.

[XXXNoahXXX]

[ QUOTE ]
this is either a thinly veiled brag post

[/ QUOTE ]

ding ding ding!

[octaveshift]

[ QUOTE ]
I would make sure you have some governmental insurance. Due to the uncertainty of the current credit environment, you don't want to be left holding the bag if the bank you chose fails. Even some of the big ones are suspect right now. Check out this article.
http://www.bloomberg.com/apps/news?p...d=aEUtlgwzL_qc

What this means is that you either need to open up 10 different accounts for $100k each or buy some kind of supplemental insurance from the bank that you want to use.

One good option might be to open a trading account at a place like Etrade where the bank is connected to the trading account. You invest 500k into a super short term bond fund or similar, and receive SIPC protection up to 500k. Then sweep the interest payments/dividends into your Etrade high yield savings account which is FDIC insured up to 100k. That covers 600k and gives you ATM access to 100k of it through local Etrade ATMs. If you need more than 100k, just sell some of the bond funds that day.

I am not sure of another brokerage that does this, but I am sure one exists. In this way you would be fully gov't insured and fairly liquid with only two accounts.

[/ QUOTE ]

So, basically exactly what I said in the post directly above you.

[img]/images/graemlins/wink.gif[/img]

[maxtower]

Yes, I was typing mine while you were typing yours. I noticed after I clicked submit, that it was redundant. Sorry.