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FDIC insurance and investments


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big misconception.  It's not about who owns the accounts/who deposits the money.  It's how the accounts are titled.  

You can easily fill up $250k in an individual account and then another $250k in JTWROS or JTTIC.  or start a trust for a few bucks in administration per year to protect another individual account.  Usually someone asking about stuff like this is a cry for help for people to notice that they have $300k in cash.  Maybe it's a sweep account.  Maybe it's a way to hide cash from his wife.  Either way, it's about title not individual identity.  

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People with $2 million in stocks aren't insured by FDIC.  People with $2 in stocks aren't insured by FDIC.  SIPC insures brokerage accounts.

FDIC only insures "cash" deposits at FDIC-insured banks.  And it's only against bank failure.

Currently, if you have 250k in a bank, you are losing money.

Edited by TwiceHorn
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If I may, I'll expand even a little further on what TwiceHorn has said about SIPC coverage on a brokerage account.

It does not protect against a loss or decline in value of any security (stock, bond, mutual fund, money market fund, tulip, or bitcoin)

Think of it as replacement insurance in the event a brokerage firm went poof and your stocks went missing.  (the broker is just a custodian if you will).

The SIPC will work to restore the asset that the custodian "lost", but that has nothing to do with the value of security.

FDIC protects you against bank failures.

SIPC protects you against brokerage firm failures - not against market declines.

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You said "a few" accounts near $300,000.  I'll take that to mean maybe 4.  That's $1.2mm.  That's 5 FDIC insurable accounts.  He needs one in his name, one JTIC, one JTWROS, one in his wife's name, and one in a named trust.  No, people don't have 8 stock accounts.  Got it?  

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