That’s true however there is a limit.

> The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. [1]

1: https://www.fdic.gov/resources/deposit-insurance/brochures/d...

FDIC only insures up to $250K

Per account.

Edit: It seems I am incorrect.

> The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank.

> Per account.

Per account "type" and structure. For DDAs if you are married it will be:

You: $250k

Your+your wife: $250k

You POD your wife : $250k

Your wife: $250k

Your wife POD you: $250k

What's POD in this context?

Payable on Death...

What @htrp said - payable on death.

DDAs?

Demand Deposit Account - the kind of account that allows for cleared funds to be withdrawn without advanced notice. Probably 99.999% of accounts such as checking and savings one can write checks/do ACH payments/send wires/transfer money from fall into this category.

>The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category

My understanding is that this might cause an unwelcome surprise to (for example) someone with a personal account at Bank A, and a sweep account at Brokerage P that sends its funds into accounts at Banks A, B, and C.

They've got an FDIC page, https://www.svb.com/fdic, and they show up in the FDIC bank finder https://banks.data.fdic.gov/bankfind-suite/bankfind/details/...

Although the Assets, Liabilities, and Capital reporting available if you click "create financial reports for this institution" estimates 5.69% of deposits are insured. Is a corporate account limited to $250K of deposit insurance? If so, I imagine many of them may have much more than that, and the reporting does show almost 75% of the deposits are in accounts with greater than $250K, assuming I'm reading the report correctly.

> Is a corporate account limited to $250K of deposit insurance?

yes

Also investments aren’t insured by FDIC, but by SIPC.

How do you mean? SVB is FDIC insured - https://banks.data.fdic.gov/bankfind-suite/bankfind/details/...

FDIC insurance is worthless for companies, as most would need more than $250k monthly just to make payroll.

You’re kidding right? There’s a limit of like $250k

An individual could easily have that much let alone a startup with millions.

It's crazy to me there aren't banks with 100% reserve ratio fully insured for a nominal fee of 0.4% or whatever (gold/silver storage with full insurance is ~0.4% so this probably isn't far off).

I'd much rather lose 0.4% of my money than lend it out at +0.01% to whatever checking accounts pay nowadays while they lend out to some asshole that does business with the bank.

In a bank? If you have that much you really should invest in something better than a bank account. Banks should be petty cash that you spend in a couple months.

That’s not quite how payroll works

Right, but gp was talking about people not businesses

no i wasn’t. i said an individual could easily have $250k in cash to show you that it is not a significant amount of money from a business perspective. nothing about what i said referred to keeping $250k in a non interest bearing account as being a smart decision for an individual

I'm confused then. What individuals keep 250k in cash? How does individuals have any bearing or relevance to businesses?

SVB is likely mostly business accounts.

i’m not talking about what the savvy thing to do is, just taking issue with the assertion that “it doesn’t matter if a bank fails cause it’s insured” when there’s a limit that the OP either failed to mention or didn’t know about

and not that it matters but this is specifically about a startup or business not talking about personal finances of an individual

Washington Mutual and Wachovia were both insured

Washington Mutual and Wachovia were both taken over without touching the FDIC insurance funds.