Get more insured at no cost

[nethgerona]

I have more than $250,000 to deposit. How can I get more insured at no cost?

[Gailete]

Put some of it another bank. You can use as many banks (different brand) as needed to be insured under FDIC rules.

That answers your question, but my question is, is that the best use of your money to have it in lower interest paying accounts? While it may be insured against bank failure, it isn't insuring it against inflation unless it is invested at a rate greater than the inflation rate.

[Drake3287]

Using two different banks is the obvious answer, sort of surprised you even asked. Make sure your making at least 2% on that, most of the larger online banks are paying at least that now.

That 2% will at least make you $5,000. a year. Certainly better then it was a year or so ago.

[disneysteve]

Make sure your making at least 2% on that, most of the larger online banks are paying at least that now.

What online banks are paying at least 2%? The best I'm seeing is 1.5%.

[disneysteve]

I have more than $250,000 to deposit. How can I get more insured at no cost?

As noted, the answer is to use more than one bank. But the bigger question is why are you keeping over 250K in bank accounts?

[bjl584]

As noted, the answer is to use more than one bank. But the bigger question is why are you keeping over 250K in bank accounts?

OP said that he is getting ready to deposit it, so maybe it is cash from the sale of a house or a business or maybe some sort of inheritance. Hopefully they will revisit this thread and answer us.

[nethgerona]

Insurance

This was actually the amount I obtained from selling our property. Thanks for enlighting me @Gailete. I'm still considering to invest into a business rather than depositing to a bank. Thanks a lot for your help.

[Gailete]

Leaving it in secured accounts until you decide what to do with it, is a good idea. Make sure you are up on the rules, especially since many tax laws are now changed, about when the profits from a house sale become taxable. Last I knew, if you did things like remodel the kitchen a few years back, that sort of expense can be deducted against what is 'profit'.

[scfr]

TI'm still considering to invest into a business rather than depositing to a bank.

If you invest in a business, it will not be insured. That is not to say that there is anything wrong with investing in a business, but your original question was about insuring a larger amount at no cost.

You should never be asked to pay for FDIC insurance by a bank. As others have stated, the way to make sure you have FDIC insurance is to split up the amount amongst different banks.

Before making a deposit, I always make sure the bank has FDIC insurance by checking at FDIC.gov

https://research.fdic.gov/bankfind/

Don't just take the bank's word for it!

The FDIC web site also has a tool you can use to calculate whether or not your deposits are fully insured or over the limits:

https://www5.fdic.gov/edie/

[nethgerona]

Getting insured at no cost

Thanks for the heads up @scfr. I'll go ahead and check those sites you provided. These are very much helpful since I don't have much idea about this. Thanks a lot.