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