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Re:Robinhood launches 3% checking account by 1123581321 on Thursday December 13, 2018 @11:00AM (#18673252)
You shouldn’t store more than $250k in cash in any kind of bank or brokerage due to the insurance limit (unless the bank has account insurance beyond $250k.) Investments are different, of course.

Edit: I forgot about the details of the limit. Thank you all.

Re:Robinhood launches 3% checking account by dec0dedab0de on Thursday December 13, 2018 @11:10AM (#18673371)
EDIT: According to the link shared by mortenjorck this is incorrect. A banker explained this to me a while ago, and I just took their word for it. I might have to call my mom now. I'll leave this up so that anyone else with the same misconception will know its wrong

It's actually per bank, per type of account. So $250k in savings accounts, $250k in checking, $250 in Money Market, etc.

Re:Robinhood launches 3% checking account by mortenjorck on Thursday December 13, 2018 @11:29AM (#18673556)
This is incorrect according to the FDIC’s website:

> All single accounts owned by the same person at the same bank are added together and insured up to $250,000

Revocable trusts, joint accounts, and other types of accounts with multiple custodians are covered separately, but checking, savings, and so on are not.

https://www.fdic.gov/deposit/covered/categories.html

Re:Robinhood launches 3% checking account by dragonwriter on Thursday December 13, 2018 @01:48PM (#18674887)
> It's actually per bank, per type of account. So $250k in savings accounts, $250k in checking, $250 in Money Market, etc.

It's not per type of account, it's per ownership category. Ownership categories are:

(1) Single accounts

(2) Certain self-directed retirement accounts

(3) Joint accounts

(4) Revocable trust accounts

(5) Irrevocable trust accounts

(6) Employee benefit (non-self-directed) plan accounts

(7) Corporation, partnership, or unicorporated association account

(8) Government accounts

https://www.fdic.gov/deposit/covered/categories.html

With a little bit of work, you can probably spread your money into a few of those categories without much problem and have more than $250k coverage, but it's not as easy as just having checking and savings.

Re:Robinhood launches 3% checking account by Schweigi on Thursday December 13, 2018 @11:16AM (#18673434)
Interactive Brokers introduced a Bank Deposit Sweep Program this year. They distribute cash over 10 banks to provide up to $2.5mio FDIC insurance.
Re:Robinhood launches 3% checking account by whitepoplar on Thursday December 13, 2018 @12:06PM (#18673898)
Same with Fidelity's free CMA account.
Re:Robinhood launches 3% checking account by bogomipz on Thursday December 13, 2018 @11:12AM (#18673393)
The limit is actually per each ownership category:

https://www.fdic.gov/deposit/covered/categories.html

Re:Robinhood launches 3% checking account by notyourday on Thursday December 13, 2018 @11:58AM (#18673822)
Per bank per beneficiary with John Smith POD Jane Smith account being considered different beneficiary than John Smith account.