Where do millionaires keep their money if banks only insure $250k?
Because federal deposit insurance caps standard accounts at two hundred fifty thousand dollars per institution, millionaires employ advanced strategies to safeguard cash exceeding this threshold. They utilize insured cash sweep services, which automatically distribute large sums across networks of dozens of partner banks to ensure every dollar remains fully covered by FDIC or NCUA insurance. Alternatively, they invest excess cash in short-term government securities like Treasury bills, utilize money market funds, or partner with private wealth managers to establish diversified, multi-institution custodial accounts.
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