Welcome Guest
Log In | Register )
You last visited December 18, 2017, 9:44 am
All times shown are
Eastern Time (GMT-5:00)

Banking Large Winnings

Topic closed. 47 replies. Last post 12 years ago by rabbitfoot.

Page 1 of 4
PrintE-mailLink

How does a bank handle and insure large lottery winnings?

Certificate of Account Deposit Registry [ 13 ]  [31.71%]
Brokeridge Firms [ 7 ]  [17.07%]
Several/Many Banks [ 21 ]  [51.22%]
Total Valid Votes [ 41 ]  
Discarded Votes [ 13 ]  
Avatar
Thread Starter
md
United States
Member #14047
April 20, 2005
598 Posts
Offline
Posted: May 19, 2005, 2:50 pm - IP Logged

If someone knows how a large jackpot winning can be deposited into one bank please explain.  The FDIC insurance limit is $100,000 beyond that there is no insurance for your money.  So how do the rich do it?

    MADDOG10's avatar - smoke
    Beautiful Florida
    United States
    Member #5709
    July 18, 2004
    21154 Posts
    Offline
    Posted: May 19, 2005, 3:05 pm - IP Logged

    ING DIRECT (THE ORANGEPLACE) CAN DO IT ALL.!

                                                 

                                                   " You can not control the Wind, but you can direct the Sail "

      Avatar
      Tennessee
      United States
      Member #7853
      October 15, 2004
      11350 Posts
      Offline
      Posted: May 19, 2005, 3:34 pm - IP Logged

      i've wondered since the insured limit was 100,000 if you put it in many banks....

        Avatar
        Morrison, IL
        United States
        Member #4657
        May 13, 2004
        1885 Posts
        Offline
        Posted: May 19, 2005, 4:37 pm - IP Logged

        That's probably what they do

          Thomas Covenant's avatar - money
          South Carolina
          United States
          Member #491
          July 16, 2002
          837 Posts
          Offline
          Posted: May 19, 2005, 5:11 pm - IP Logged

          You invest it. If you win, contact a tax attorney, then a financal advisor. If you need surgery, would you go to a doctor, or do it yourself?


          Okay, now I believe you can predict lottery numbers

            Thomas Covenant's avatar - money
            South Carolina
            United States
            Member #491
            July 16, 2002
            837 Posts
            Offline
            Posted: May 19, 2005, 5:38 pm - IP Logged

            " Yeah, but if you invest it, you could lose everything."



            Probably not. There are millions of low risk investments available. Teresa Heinz Kerry paid taxes on just 12% of her income, using tax-exempt bonds, which are very low risk. She paid less than most middle class people and you know how rich she is.


            Okay, now I believe you can predict lottery numbers

              MMGuy's avatar - waveform
              Houston, Tx
              United States
              Member #13043
              March 28, 2005
              119 Posts
              Offline
              Posted: May 19, 2005, 5:46 pm - IP Logged

              I thought that they bank wire to one bank and then it is up to you to do whatever after that.

                rabbitfoot's avatar - 8ball

                United States
                Member #620
                August 25, 2002
                205 Posts
                Offline
                Posted: May 27, 2005, 1:04 pm - IP Logged



                If someone knows how a large jackpot winning can be deposited into one bank please explain.  The FDIC insurance limit is $100,000 beyond that there is no insurance for your money.  So how do the rich do it?



                I know for sure that one can deposit up to $5-million in CEDARS spread across 50 banks. That amount may have been raised to $10-million, I,m not sure on that.  All money is FDIC insured as your money is deposited in $100,000 sums in all participating banks.  To find out how CEDARS work, go to Bankrate.com and look up CEDARS.  Just think, you and your spouse could deposit up to $5-million each (maybe its $10-million now) using just one deposit source. 

                I play to dream and dream of winning a major jackpot!

                  Shawnintennesse's avatar - British Pint_414_.jpg
                  Springfield,Ohio
                  United States
                  Member #14006
                  April 19, 2005
                  3972 Posts
                  Offline
                  Posted: May 27, 2005, 1:09 pm - IP Logged

                  Also big banks in the South have free financial advisors..

                  First Tennessee,AMsouth,Regions..... So if you win.. Before you go claim you get an advisor.. Then your straight with those taxs before you ever claim...

                  If it weren't for Vtracs and STXS where would we be?

                    Fwup's avatar - babylaugh 086.gif

                    United States
                    Member #3654
                    February 9, 2004
                    70 Posts
                    Offline
                    Posted: May 27, 2005, 9:14 pm - IP Logged

                    If you won $100,000,000 in a lottery you probably wouldn't want to deposit it in your checking account anyway, so I doubt you would need to worry about FDIC insurance limits. Your best bet would be to hand it over to a professional.

                      rabbitfoot's avatar - 8ball

                      United States
                      Member #620
                      August 25, 2002
                      205 Posts
                      Offline
                      Posted: May 28, 2005, 9:36 am - IP Logged






                      If someone knows how a large jackpot winning can be deposited into one bank please explain.  The FDIC insurance limit is $100,000 beyond that there is no insurance for your money.  So how do the rich do it?





                      I know for sure that one can deposit up to $5-million in CEDARS spread across 50 banks. That amount may have been raised to $10-million, I,m not sure on that.  All money is FDIC insured as your money is deposited in $100,000 sums in all participating banks.  To find out how CEDARS work, go to Bankrate.com and look up CEDARS.  Just think, you and your spouse could deposit up to $5-million each (maybe its $10-million now) using just one deposit source. 



                      That's CDARS pronounced Cedars.

                      I play to dream and dream of winning a major jackpot!

                        rabbitfoot's avatar - 8ball

                        United States
                        Member #620
                        August 25, 2002
                        205 Posts
                        Offline
                        Posted: May 28, 2005, 9:59 am - IP Logged



                        If you won $100,000,000 in a lottery you probably wouldn't want to deposit it in your checking account anyway, so I doubt you would need to worry about FDIC insurance limits. Your best bet would be to hand it over to a professional.



                        I did agree and we're not talking about putting your money in a checking account. First of all, why turn your money over to a professiona to lose?  Look at how many people were going that route and loss their shirt when the market went sour!  CDARS and tax free bond investments would be all you would need to conserve your money and still have plenty of spending money.  Let's say you ended up with $30-million after taxes to invest and you invested it all at just 4%, you would net 2.48% after taxes per year. That's $30-million times minus 38%  taxes in IL or $744,000 pocket money each year without ever touching the principle.   

                        I play to dream and dream of winning a major jackpot!

                          Avatar
                          MA
                          United States
                          Member #11452
                          February 14, 2005
                          74 Posts
                          Offline
                          Posted: May 28, 2005, 6:37 pm - IP Logged

                          Tax free bonds aren't some magical thing.  They're government bonds that yield lower interest than regular bonds.  In effect, the taxes are taken out when you buy the bond.

                           As an example, condsider two bonds with identical risk, one tax-free, the other taxable.  Say you buy $1000 worth of both bonds.  The taxable bond pays 3% interest, or $30, of which you pay $5-10 in taxes, depending on your tax bracket.  The tax-free bond would probably pay something around 2.1%, or $21, of which you pay $0 in taxes.  So you do wind up gaining a little from the tax-exempt bonds if you're in the highest tax bracket, but it's not the boon a lot of people think it is.  In fact, the market reaches equilibrium at roughly the point where the interest of the non-tax bond is the same as the interest on the taxable bond, reduced by the highest marginal tax rate.  So the 13% Theresa HK number may be accurate, but it doesn't exactly reflect the truth.  12% was taxable by the feds, but she also gave up a hefty chunk of her would-be earnings to the municipalities who issued her bonds when she chose her investments.


                            United States
                            Member #379
                            June 5, 2002
                            11296 Posts
                            Offline
                            Posted: June 15, 2005, 11:37 am - IP Logged

                            Lump sum is always better.

                              KyMystikal's avatar - 1457224010054
                              Florence, Alabama
                              United States
                              Member #8658
                              November 13, 2004
                              2028 Posts
                              Offline
                              Posted: June 15, 2005, 12:06 pm - IP Logged

                              If you won $100,000,000 in a lottery you probably wouldn't want to deposit it in your checking account anyway, so I doubt you would need to worry about FDIC insurance limits. Your best bet would be to hand it over to a professional.

                              lol, I'm a professional. Send it to me!!!!!

                              I love doubles and remember, it's just a game!!!!!!