Welcome Guest
Log In | Register )
You last visited January 21, 2017, 10:35 pm
All times shown are
Eastern Time (GMT-5:00)

FDIC only $100,000?

Topic closed. 44 replies. Last post 8 years ago by psykomo.

Page 1 of 3
PrintE-mailLink
sirbrad's avatar - Lottery-062.jpg
PA
United States
Member #22983
October 6, 2005
2226 Posts
Offline
Posted: September 17, 2008, 7:15 pm - IP Logged

So how does someone insure their money if they win say $50,000,000? That is kinda stupid and I would not want that much money sitting in the bank uninsured. Unless you bought a ton of $100,000 CD's? So what do people do who win a large amount fir insurance? I heard there is something called a CDAR or something that covers up to $50 million.

 

But instead of worrying about insurance, investing, and taxes, I may just take the annuity at this stage being the jackpot is so high it doesn't matter much. At least you know a check is coming every year. Here is what the FDIC states:

 

"Thank you for contacting the FDIC.  Your inquiry submitted via email reads as follows: "Hi I read that you insure $100,000 on Cd's or bank accounts? Is this the highest it goes? What if someone won the lottery and had about $50,000,000 how would that be insured? Or what would be covered and how? What about people who have hundreds of millions, how are they covered?..."

FDIC deposit insurance is determined according to how the funds are owned.  Deposits held in an FDIC insured institution in the same "right and capacity" (which refers to legal ownership, such as single or joint ownership) are added together and insured up to $100,000 per ownership category (with self-directed retirement accounts such as IRA's insured up to $250,000).  The insured amount includes principal and any earned interest.  All types of deposits--certificates of deposit (CD's), checking, savings, money market, and NOW accounts--held in the same name(s) in the same ownership category are added together for calculation of deposit insurance. Funds held in different rights and capacities are separately insured.  Deposits at different branches of the same FDIC insured institution, whether they are in the same state or in a different state, are added together in calculating deposit insurance coverage. 

Basic Insurance Limit
---------------------------
The basic insurance limit is $100,000.  Principal and interest earned are included when calculating insurance coverage.

Deposits maintained in different categories of legal ownership are separately insured.  Therefore, it is possible for a depositor to have more than $100,000 insurance coverage in a single institution if the funds are owned and deposited in different ownership categories.  The most common categories of ownership used by depositors include individual ownership, joint ownership, Revocable Trust accounts, and Self-Directed Retirement Accounts.  The insurance limit is applied to the combined total amount the owner holds within each ownership category.

The following are some of the most common ownership categories for individual depositors:

* Single Accounts
-----------------------
A single (or individual) ownership account is an account owned by one person.  All funds owned by an individual and deposited in one or more single ownership accounts are added together and insured up to a maximum of $100,000.  The type of account (whether checking, savings, certificates of deposit, or other form of deposit) has no bearing on the amount of insurance coverage. 

* Joint Accounts
---------------------
Deposits owned by two or more people (who need not be related).  Each person's share in joint accounts are added together an insured up to $100,000.    A joint deposit account is deemed to exist only if each co-owner has personally executed the account signature card and each possess withdrawal rights.  In the case of a joint certificate of deposit or any deposit obligation evidenced by a negotiable instrument, the deposit must in fact be jointly owned.  The interests of each co-owner are deemed equal unless otherwise stated on the insured bank's records in the case of a tenancy in common.   These joint accounts are insured separately from single ownership accounts.

If these requirements are met, each person's total share of joint accounts at the same insured bank is added together and the total is insured to $100,000.  The balance in a joint account can exceed $100,000 and still be fully insured if each co-owner's share of joint accounts at the same bank does not exceed $100,000.  For example, if you had a $200,000 joint account with a friend, you each would be separately insured for $100,000 at the same insured bank.

* Revocable Trust Accounts
----------------------------------
The term "testamentary account" refers to a revocable trust account, tentative or "Totten" trust account, "payable-on-death" account, or any similar account which evidences an intention that the funds shall pass on the death of the owner of the funds to a named beneficiary.  All of the deposits held in any accounts naming beneficiaries will be aggregated and insured in this category, if the appropriate requirements are met.

For "formal" trust agreements, the bank account title must include appropriate "trust language" (such as "revocable trust," "living trust", or "family trust.")  If the beneficiary named in the trust is a spouse, child, grandchild, parent, or sibling of the owner, the funds are insured for up to $100,000 for each beneficiary's interest in the trust assuming an equal interest in the trust assets.  If the beneficiary is NOT the owner's spouse, child, grandchild, parent, or sibling, all funds being held for all such beneficiaries are added together with any single ownership funds the owner may have at the same institution and insured in the Single Accounts ownership category.  The beneficiaries do not need to be named in the bank records if the deposit was created using a "formal" trust agreement.  The FDIC will obtain a copy of the trust agreement from the depositor if the bank fails to determine the identity of the beneficiaries.   

For "informal" revocable trust accounts, use of "Payable-on-death (POD)," "In-trust-for (ITF)," "Transfer on death (TOD)," or any similar testamentary language in the deposit account title in the bank records indicates an intention that the funds will pass to a named beneficiary or beneficiaries upon the death of the owner(s) of the funds.  If the beneficiary is a spouse, child, grandchild, parent, or sibling of the owner, the funds are insured up to $100,000 as to each beneficiary's interest in the trust.  If the beneficiary is NOT the owner's spouse, child, grandchild, parent, or sibling, all funds being held for all such beneficiaries are added together with any single ownership funds the owner may have at the same institution and insured in the Single Accounts ownership category.  Payable on death accounts must identify the beneficiaries by name in the account records of the institution (but not necessarily in the account title).

 

* Retirement Accounts
----------------------------
Self-Directed Retirement accounts (such as IRAs or Keoghs) are insured separately from all non-retirement funds held at the institution.  All IRA funds held at the same insured institution by the same person are added together, and the total insured to $250,000. 

We recommend you visit our website to obtain additional information concerning deposit insurance coverage:   www.fdic.gov/deposit/deposits/.  If you click on any one of the listed deposit insurance products you will be taken to the product or an additional list and links to the product of your interest.  Of particular interest we would suggest you review "Your Insured Deposits" (Comprehensive Guide) which explains in detail all of the deposit insurance categories.

This site also gives you access to our interactive Electronic Deposit Insurance Estimator (EDIE), which allows users to calculate the insurance coverage of their accounts and generate a printable report that clearly states if their deposits are fully insured or not.

We hope this information is helpful to you."

 

 

 

So what do people do with millions, or even billions? Is there a special account with insurance for those?


    United States
    Member #17555
    June 22, 2005
    5582 Posts
    Offline
    Posted: September 17, 2008, 7:29 pm - IP Logged

    U.S treasury bonds. A 100,000.00 a piece. 

    Full faith backed up by the govt. The only way to NOT get your money is if the country went totally bankrupt. And almost 4 percent interest.

    Only way to go.

      Avatar
      NY
      United States
      Member #23835
      October 16, 2005
      3501 Posts
      Offline
      Posted: September 17, 2008, 10:51 pm - IP Logged

      Most people with millions of dollars, and all people with billions of dollars have the vast majority of their wealth invested in things that offer no insurance. Stocks, bonds, real estate, commodities, and more. The way to insure that you don't lose your money with big investments is to understand what you'e investing in, and put your eggs in a lot of different baskets.

        sirbrad's avatar - Lottery-062.jpg
        PA
        United States
        Member #22983
        October 6, 2005
        2226 Posts
        Offline
        Posted: September 17, 2008, 11:18 pm - IP Logged

        What about the people who have millions who have no interest in investing? If I had $100 million dollars investing would be fun, but I would not need to. I would never spend all of it in many lifetimes. So how can I be protected if I do not want to bother with investing, and the IRS?

          Avatar
          Republic of Texas
          United States
          Member #57557
          January 9, 2008
          1095 Posts
          Offline
          Posted: September 18, 2008, 12:11 am - IP Logged

          What about the people who have millions who have no interest in investing? If I had $100 million dollars investing would be fun, but I would not need to. I would never spend all of it in many lifetimes. So how can I be protected if I do not want to bother with investing, and the IRS?

          First things first - take the cash option - literally.

          2 purchases - #1 buy a very large mattress & #2 buy a very large gun with bullets (or shells if you want broad form coverage)

          3 tasks - #1 stuff $100 million cash into very large mattress, #2 learn to handle & shoot very large gun & #3 keep very large gun loaded at all time (keep away from small children and idiots)

          Thud

          face

          singlewinnersinglewinnersinglewinner   

            savagegoose's avatar - ProfilePho
            adelaide sa
            Australia
            Member #37136
            April 11, 2006
            3316 Posts
            Offline
            Posted: September 18, 2008, 1:10 am - IP Logged

            that states a the same institution, so yeah $100k accounts at multiple banks, multiple  pesnion funds and testimentory trusts ie  living wills. still would only make about 10 mill if you did 10 banks? are there even 10 banks left in america?

             

            I guess you have discovered the truth about winning lotto, it isnt all happy campers and easy living, with large money comes larger worries.  still %4 on gov bonds doesnt sound too bad if u have $50 mill; thats 1 mill a year. enough to get by on i imagine.

            2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

            keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318

              Avatar

              United States
              Member #63694
              August 5, 2008
              34 Posts
              Offline
              Posted: September 18, 2008, 2:03 am - IP Logged

              First things first - take the cash option - literally.

              2 purchases - #1 buy a very large mattress & #2 buy a very large gun with bullets (or shells if you want broad form coverage)

              3 tasks - #1 stuff $100 million cash into very large mattress, #2 learn to handle & shoot very large gun & #3 keep very large gun loaded at all time (keep away from small children and idiots)

              Thud

              lol i agree especially with our economy looking like it's gonna collapse i'd only put like half a million in the bank the rest is staying with me in a big house with a security system and a couple of guns i'd buy.

                grengrad's avatar - nw rogue.jpg
                Raleigh
                United States
                Member #49057
                January 17, 2007
                172 Posts
                Offline
                Posted: September 18, 2008, 9:21 am - IP Logged

                You can also invest in bonds or mutual funds through a brokerage account.

                SIPC provides insurance coverage up to $500,000 of the customer's net equity balance including up to $100,000 in cash.

                OptionsXpress, Muriel Siebert, Wells Fargo, Firstrade, Schwab, Fidelity, Vanguard, TradeKing, E*Trade, Ameritrade, Scottrade, the list goes on.

                So, with a few mouseclicks and some savy choices, you can cover 5-10 million in no time.

                  dvdiva's avatar - 8ball

                  United States
                  Member #2338
                  September 17, 2003
                  2063 Posts
                  Offline
                  Posted: September 18, 2008, 9:30 am - IP Logged

                  No imports or exports would kill our economy.

                  The problem I see with this crisis is CEO's and the board of directors of companies getting government bail outs are facing no consequences for their actions. It's one thing to take risks in business and fail it's another to do so at taxpayer expense.

                  Taxing our way out of depression also never works. The hardest hit are small businesses that make a big supplier of jobs. No jobs no recovery. The very rich can just move their money elsewhere in the world.

                  People seem to forget that the last depression ended with WWII. The last thing we need is another war.

                    beaudad's avatar - animaniacs26
                    Mid Atlantic States
                    United States
                    Member #60043
                    April 3, 2008
                    1422 Posts
                    Offline
                    Posted: September 18, 2008, 1:01 pm - IP Logged

                    Here's one that shocked me.......the slogan of FDIC insured up to 100,000 dollars.............what I had a good tax attorney tell me was yes it is insured to 100,000..............HOWEVER .....THEY DON'T TELL  YOU.........THAT........ THEY CAN TAKE UP TO  10  TEN YEARS TO PAY YOU BACK.......................ASK AROUND.......SEE IF I AM RIGHT......beaudad........

                      beaudad's avatar - animaniacs26
                      Mid Atlantic States
                      United States
                      Member #60043
                      April 3, 2008
                      1422 Posts
                      Offline
                      Posted: September 18, 2008, 1:08 pm - IP Logged

                      sirbrad..............you might want to check....the FDIC may insure 100,000 HOWEVER A GOOD TAX ATTORNEY ONCE TOLD ME.....ITS INSURED TO 100,000,,BUT THEY CAN TAKE UP TO 10 TEN YEARS TO PAY YOU BACK.........CHECK IT OUT,,,,,,,,,,beaudad

                        Avatar
                        NY
                        United States
                        Member #23835
                        October 16, 2005
                        3501 Posts
                        Offline
                        Posted: September 18, 2008, 1:35 pm - IP Logged

                        What about the people who have millions who have no interest in investing? If I had $100 million dollars investing would be fun, but I would not need to. I would never spend all of it in many lifetimes. So how can I be protected if I do not want to bother with investing, and the IRS?

                        Nobody who has millions and a lick of sense isn't interested in investing. They may not devote their life to it, but they make some sort of effort. Whether you invest or not, the only way to  protect a large investment is to be conservative and to spread it around into a lot of small amounts.

                        That leaves you two basic choices. One is to  buy a big house, put in a good security system, and keep the money in your basement. The other is to devote a bit of effort to managing it as if it actually mattered.

                        Aside from having to invest in order to qualify, SIPC insurance is far different than FDIC insurance. SIPC will cover you if your broker sells your investment (not all investments qualify) and is then unable to pay you for some reason. The investment itself is not insured. There's no reward without some risk.

                          psykomo's avatar - animal shark.jpg

                          United States
                          Member #4877
                          May 30, 2004
                          5145 Posts
                          Offline
                          Posted: September 18, 2008, 4:28 pm - IP Logged

                          sirbrad..............you might want to check....the FDIC may insure 100,000 HOWEVER A GOOD TAX ATTORNEY ONCE TOLD ME.....ITS INSURED TO 100,000,,BUT THEY CAN TAKE UP TO 10 TEN YEARS TO PAY YOU BACK.........CHECK IT OUT,,,,,,,,,,beaudad

                          Thinking of...

                          WHY worry>>>>>>>>Nancy Peso and her RICH hubby from kaliephonu

                          will BAIL-U OUT>>>>>Maby she will send U a case of wine if U-WILL V

                          for O'BAMA & BARBARA TRYZAND $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

                          JUST MAKE a huge contro to the DEM'$$$$$$$$$$$$$$$$$$$$$$

                          "GREAT SOCIETY">>>they will set YOU FREE!!!!!!!

                          if U-WANT CHANGE>send MONEY>lot's of $$$$

                          to O'BAMA>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

                          THEN U may or may not get UR call & THANK-YOY from KALIEPHONU!!!

                          NOTE:

                          PLEASE tell O'BAMA to HELP his PUR 1/2 brother who lives on $13/week!

                          TRANSLATION:

                          ENJOY UR $100,000>>HELP the ONE's U-LUV>>>>>>>>>>NOW!!!!!!!!

                          DON't PROMISE "BULL$HIT"!!!!!!!!!!!!!!!!!

                          we are MAD as HELL and WON't TAKE-IT ANYMORE!!

                          LOL>>>>>>>JACKPOT>>>>>>>>>(to giverer's) NOT-NOT TAKER'SSS!!

                          PSYKOMO

                            bigato1010's avatar - army

                            United States
                            Member #33588
                            February 22, 2006
                            2068 Posts
                            Offline
                            Posted: September 18, 2008, 4:38 pm - IP Logged

                            Thinking of...

                            WHY worry>>>>>>>>Nancy Peso and her RICH hubby from kaliephonu

                            will BAIL-U OUT>>>>>Maby she will send U a case of wine if U-WILL V

                            for O'BAMA & BARBARA TRYZAND $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

                            JUST MAKE a huge contro to the DEM'$$$$$$$$$$$$$$$$$$$$$$

                            "GREAT SOCIETY">>>they will set YOU FREE!!!!!!!

                            if U-WANT CHANGE>send MONEY>lot's of $$$$

                            to O'BAMA>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

                            THEN U may or may not get UR call & THANK-YOY from KALIEPHONU!!!

                            NOTE:

                            PLEASE tell O'BAMA to HELP his PUR 1/2 brother who lives on $13/week!

                            TRANSLATION:

                            ENJOY UR $100,000>>HELP the ONE's U-LUV>>>>>>>>>>NOW!!!!!!!!

                            DON't PROMISE "BULL$HIT"!!!!!!!!!!!!!!!!!

                            we are MAD as HELL and WON't TAKE-IT ANYMORE!!

                            LOL>>>>>>>JACKPOT>>>>>>>>>(to giverer's) NOT-NOT TAKER'SSS!!

                            PSYKOMO

                            I swear PSYKOMO your comments are funny as hell ! 

                              psykomo's avatar - animal shark.jpg

                              United States
                              Member #4877
                              May 30, 2004
                              5145 Posts
                              Offline
                              Posted: September 18, 2008, 5:17 pm - IP Logged

                              I swear PSYKOMO your comments are funny as hell ! 

                              THANK'sssssssss for UR support bigato1010:

                              Most people on the LP donot know that (or realize) that PSYKOMO has a

                              "Little" BRO named psyjomo>> and he live's in a pur country somewhere

                              in centrail america..........BUT>> and we all know ther is alway's a BUTT

                              out dare somewhere???BUT>> we send HIM & the cuzion's MONEY$$$$

                              as much as we can AFFORD in these TRY'in TIME'$$$$$$$$$$$$$$$$$$

                              LOL>>>>>>>>>JACKPOT 2-U>>>>MYFRIEND$$$$$$$$$$$$$$$$

                              PSYKOMO