A recent CNBC survey reveals that 63% of millionaires support raising Federal Deposit Insurance Corp. (FDIC) coverage limits. The wealthiest millionaires, with $5 million or more in assets, are even more supportive, with 67% in favor of the change. The survey included 764 respondents with $1 million or more in investable assets.
Currently, the FDIC insures $250,000 per depositor for each ownership category for deposits held at an insured bank. However, it seems that millionaires are looking for more coverage given recent bank failures. While waiting for potential reform, there are actions investors can take right now to increase their deposit coverage. Here’s what you can do:
Add beneficiaries: Instead of opening multiple bank accounts, consider adding beneficiaries, such as your children, to your existing accounts. Each beneficiary adds another $250,000 in coverage based on current limits.
Account titling matters: Remember, the way your bank accounts are titled will take precedence over your will, so ensure your accounts are properly structured.
Diversify your accounts: Having various types of accounts, including savings accounts, individual retirement accounts (IRAs), or trust accounts, can amplify the amount of insured balances you have.
Stay tuned for potential FDIC reform: The FDIC released three options for the future of the deposit insurance system, including limited coverage, unlimited coverage, and targeted coverage. Congressional action would be necessary for any expansion of FDIC insurance.
SOURCE:
https://www.cnbc.com/2023/06/12/millionaires-want-higher-fdic-deposit-limits-cnbc-survey.html
