FDIC's How Money Smart Are You? (2024)

FAQs

Where do millionaires keep their money if banks only insure 250k? ›

Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.

1. You have a budget. People who are good with money are aware of their finances. They create budgets so they can be on top of their income, track their expenses and ensure they aren't living beyond their means.

Monitor and control spending

It's easier to prioritize saving when you know how much money you have to begin with. Track where your money goes in order to identify your spending habits and find saving opportunities. You can then create a budget based on allocating your money between your must-haves and nice-to-haves.

By the end of 2022, the FDIC reported that its Deposit Insurance Fund had a balance of $128 billion—less than half of the $262 billion that might be needed.

The FDIC insures up to $250,000 per account holder, insured bank and ownership category in the event of bank failure. If you have more than $250,000 in the bank, or you're approaching that amount, you may want to structure your accounts to make sure your funds are covered.

Smart money is the capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals. Smart money was originally a gambling term that referred to the wagers made by gamblers with a track record of success.

The most common signs of a financially stable person include having little to no debt, being able to make and stick to a budget, having a healthy amount of money in savings, and having a good credit score.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

What's the smartest thing you do for your money? ›

Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.

In the event of a bank failure, insured deposits are guaranteed to be returned within two business days by the FDIC.

Opening accounts with different ownership categories, such as joint accounts or trusts, can also increase FDIC insurance coverage. Other options for insuring excess deposits include brokerage accounts and credit unions.

Opt for an account with both FDIC and DIF insurance

The Depositors Insurance Fund, or DIF, is a private insurance fund that insures deposit amounts at member banks beyond what the FDIC covers — without a limit.

Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.

Millionaires also have zero-balance accounts with private banks. They leave their money in cash and cash equivalents and they write checks on their zero-balance account. At the end of the business day, the private bank, as custodians of their various accounts, sells off enough liquid assets to settle up for that day.

Rich individuals opt for well-known brands to meet their banking needs. Established and well-known banks have a long history and a strong reputation for financial stability and security. Rich people often prioritize trust and reliability when selecting a bank to safeguard their assets.