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NonProfit Bank Balance over 250k

Hi there,

Given the FDIC cap of 250k, I believe we should open a second bank account to split our balance.

Operating vs Main account, and we can transfer the monthly budget to the operating on the 1st of each month.

Sound right?

Thank you!

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

If opening a second bank account you mean with a different bank.....then yes. If it is with the same bank, then it is a NO.

"The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. For a basic category-by-category overview of FDIC deposit insurance coverage, you can use the Account Categories tool."

https://www.fdic.gov/deposit/deposits/faq.html

I will say this much.,,,,it is much more prudent to examine WHERE you bank than the number of accounts you have in the bank or banks. Remember, this is just insurance. The bank/s has to fail first. Federal stress testing should give you an idea how your bank is doing or where to place your money.

Also, you have to reevaluate if the trouble (monthly transfers) is worth the risk (or non-risk). This may be in the form of the actual dollar amounts that are "at-risk". This approach (vs. the $250k cap) will make more sense as you grow.

Anonymous
(Founder) |

Got it, thank you Emerson!

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