It generally looks transparent and like it's just in your chosen bank. (Though if you want laddering, etc, you do need to plan).
If you have a lot of cash, you buy T-Bills and other instruments with some of it.
And yes, you have some risk remaining, of some of the cash disappearing. But with diversification and insurance, it is negligible.
https://www.interactivebrokers.com/en/accounts/sweep-program...
https://www.cnb.com/business-banking/accounts/savings/bank-d...
https://www.wellsfargo.com/investing/cash-sweep/
Of course if those banks are depositing to the same 10 banks then you're really protected at 10x...but, well much better than 250k? I'm going to guess it's called a "Sweep Program" but I'm no finance expert. I know of this because it's common for brokerage account to do this - as very often, you'll have more than $250k in cash if you're doing active trading.
Sure, smaller transactions in flight will always be at risk.
> FDIC needs to be reformed. I feel like it's been 250k for my entire life lol, at the very least the amount needs to be revisited.
It moved from $100,000 to $250,000 15 years ago.