HSBC New Money earns 6%

[prohornblower]

[ QUOTE ]
As far as I know the FDIC only insures you up to 100K per account. So I think if you put more than 100K into any one account, and the bank fails, you could lose that extra amount.

So hopefully, in my case, HSBC won't go under over the next two months. And, if you want to be very safe, you should not put more than 100K into any bank account or money market.

But it seems kind of strange that just by creating multiple accounts, that the government would extend additional insurance. Not sure if there is any logic behind that. And not sure what the total amount you can insure might be at one institution.

Worth looking into.

[/ QUOTE ]

I was under the impression that you can self-insure any location-amount over $100K. Am I wrong?

I mean, what do multi-millionaires and billionaires do? There aren't enough banks in the world to circumvent this.

[squiffy]

The FDIC wasn't developed to protect multi-millionaires or billionaires. It was developed to protect individuals and to maintain confidence in the banking system.

In general, if you are single and maintaining a non-retirement account or accounts, then you don't want to put much more than 100K in any one bank.

[707782]

Just you guys know when others ask you what is HSBC stands for, it stands for "Hong Kong Shanghai Banking Corporation", originated in Hong Kong, later move the head quarter to London.

[godofgamblers]

Yeah HSBC is very trusted among the chinese community even here in the United States. It definitely has the biggest pull from what I've seen, but I think they are trying to branch out more towards the general public now. The ads I've seen here seem to steer it to the direction of "the bank next door" type neighborhood bank, but it's not really that popular and few branches compared to BoA etc.

Also I registered for an account a few months ago and the way the interest seems to work is that it gets calculated per day, so even if you pull out all your money before the end of the month you'll earn the interest for the earlier days. It works on an average daily balance, as my first real deposit cleared on the 24th or so of February, and I still received interest of close to $2.00 that month since I had an average balance of $600 or so. (10k for the 2 remaining days of February = 20k total, divided by 28 days). I think that's how it works.

[technologic]

[ QUOTE ]
[ QUOTE ]
As far as I know the FDIC only insures you up to 100K per account. So I think if you put more than 100K into any one account, and the bank fails, you could lose that extra amount.

So hopefully, in my case, HSBC won't go under over the next two months. And, if you want to be very safe, you should not put more than 100K into any bank account or money market.

But it seems kind of strange that just by creating multiple accounts, that the government would extend additional insurance. Not sure if there is any logic behind that. And not sure what the total amount you can insure might be at one institution.

Worth looking into.

[/ QUOTE ]

I was under the impression that you can self-insure any location-amount over $100K. Am I wrong?

I mean, what do multi-millionaires and billionaires do? There aren't enough banks in the world to circumvent this.

[/ QUOTE ]

multi millionaires and billionaires don't keep all their money in banks, some have it in fixed income instruments, real estate, equity investments, etc. the majority of their wealth i would assume is not concentrated in pure cash.

[almostbusto]

FDIC technically only insures up to 100K but there is precedent where the FDIC would honor any deposits up to any amount in the event of a bank failure.

I think it relates to the federal reserves "Too big to fail" principle which basically states that some banks are so big that they can not be allowed to fail under any circumstances because their failure could collapse the entire nations financial system. In such cases, all deposits are insured for any amount to prevent a run on the bank from individuals with high deposits.


here is a classic textbook case http://en.wikipedia.org/wiki/Contine..._Trust_Company


200k in one account is just as safe as 100k for all practical purposes imo but i am no expert in banking.

[prohornblower]

HSBC finally released my interest to my account today. I beleive I set it up on 2/20 so even though my first deposit wasn't until around 2/27, they release interest 30 days after your account is set up.

I still wish it would show the accrual daily. [img]/images/graemlins/grin.gif[/img]