Re:FDIC Takes over Silicon Valley Bank
by sylvainkalache on Friday March 10, 2023 @01:22PM
(#35098640)
Speaking of Mercury, they recently announced increasing customers FDIC insurance maximum to $1M for customer accepting to enroll in their sweep program. Not sure SVB offers this but I hope they do.
How can they do that? They don't choose FDIC limits.
Re:FDIC Takes over Silicon Valley Bank
by dismalpedigree on Friday March 10, 2023 @01:45PM
(#35099011)
Mercury is not a bank. It keeps your funds spread across many banks where they open accounts on your behalf. Then they spread the deposits around to stay below the $250k threshold at each bank. Same as Fidelity and many others.
I would be shocked if SVB was sweeping deposit funds into other banks.
I've heard from a few people today who have Cash Sweep Accounts at SVB:
https://www.svb.com/liquidity-management/deposits-and-invest...
Some claim that these accounts are insured/protected up to $125m, but I can't find any info online to corroborate that.
Re:FDIC Takes over Silicon Valley Bank
by dismalpedigree on Friday March 10, 2023 @02:00PM
(#35099248)
This surprises me. I wonder what the mechanism and incentives are for a bank to sweep deposits to another bank.
SVB was an old stodgy banks that companies went to instead of the new kids like Mercury, specifically because of the trust. They have terrible UX and mobile app but at least they were solid and had a 40 year track record.