7 or 8 Figure balances in one bank?

I ran across this multi-faceted question in another forum and didn’t get a clear answer on it. Anyone’s input would be great. I just never understood how putting a few million into, for example, a T.A.G. account could be considered safe? From what I’ve read the account is insured for $250,000. Is the solution to open up several accounts in one bank? That just doesn’t sound right. Unless I know exactly where the funds are going and in what amounts, I can’t “plan” on only leaving the funds in the bank for a few days.

The Question:
Do you think that we will have time to select a bank based on packages or should we use a current bank and just change address and is it safe to cash 7 or 8 figures into one place?

Be Blessed All!!

OK - this is where your consultation with a TAX attorney and Finance CPA will come in handy.

in 2009 the FDIC planned to end the "Transaction Account Guarantee" which ended up not happening until 2010. It was not really for individuals - it was to guarantee accounts for payroll an ongoing business expenses. Having a separate account for these types of transactions helps keep security of company funds.

For those individuals that were covered - it was the regular FDIC 250,000 per depositor / per account PLUS the TAG of an additional 250,000.

For the record - NO ONE has ever lost money on an FDIC insured account - although anything is possible.

Sorry for the delayed reply IQD4US and thanks. I am going to talk with my CPA/Attorney. In your reply you said "in 2009 the FDIC planned to end the "Transaction Account Guarantee" which ended up not happening until 2010. It was not really for individuals.” By that statement do you mean that T.A.G. accounts or the guarantee portion was ended in 2010?

Please believe me when I say that I am NOT trying to put fear into where people are going to put the new US currency that they just received. I just don't understand the security portion of those deposited funds. For example: Let’s say I take 20,000,000 IQD (I wish) to one of the top four banks. And I say, "I want to cash in because you have given me the best rate." So I give them the IQD and they convert to say $140,000,000 ($7 per IQD, it’s my example so I can pick my rate (smile) Woo Hoo). So I now have that money available to me immediately or over the next few days, whichever. Is that entire amount safe in a TAG at $250,000 per account? Or would I have to open 7 TAG?
My overall concern is for everyone going and putting all this money into one of four banks. In my example: $140 million X all of the other millions of people putting in their millions in these couple banks. I know we all don’t trust the banks 100%. What laws are there that say they can’t say the day after the RV (and they have all that money), “oh well, look at all that money we have now, lets’ close down. We’ll just make sure each person gets their $250 K and be done”.
Please correct me if my thinking is wrong and there is no way that can happen. I want to be a good steward with what our heavenly Papa is giving me. Thank you for your precious time.

jwilky wrote:I ran across this multi-faceted question in another forum and didn’t get a clear answer on it. Anyone’s input would be great. I just never understood how putting a few million into, for example, a T.A.G. account could be considered safe? From what I’ve read the account is insured for $250,000. Is the solution to open up several accounts in one bank? That just doesn’t sound right. Unless I know exactly where the funds are going and in what amounts, I can’t “plan” on only leaving the funds in the bank for a few days.

The Question:
Do you think that we will have time to select a bank based on packages or should we use a current bank and just change address and is it safe to cash 7 or 8 figures into one place?

Be Blessed All!!

Wouldn't it make sense ALSO... while talking to your private banker... to inquire if he/she could insure all OVER the $250,000 with Lloyd's of London, or other out-of-house insurer? Your tax advisor/attorney could direct you with more certainty... don't you think?

Just a thot... MiddleClassMaiden :flower:

One option maybe to check into a cdars account.

http://www.cdars.com/aboutus/default.aspx

....just got confirmation from a friend and some forgotten info I received off of the FDIC.gov website.

Readers of FDIC Consumer News know that under the Dodd-Frank financial reform law enacted last July, certain checking accounts that pay no interest will benefit from full deposit insurance coverage — regardless of the dollar amount — during the two years from December 31, 2010, through December 31, 2012

FULL DEPOSIT COVERAGE.............THROUGH DECEMBER 31, 2012

Thanks all for letting me vent my concerns