Having over $100K in Checking/Savings at a Bank

Hi,

I wish I could say this of myself, but I know someone who has over $100K in at the same bank (between her checking & savings). This is not a nationally recognized bank (i.e. not Citibank, Chase, BofA, etc...).

I am worried for her in case the bank goes belly up. She could lose everything over $100K, correct? FDIC only covers her up to $100K I believe.

Am I correct in my concern? If so, what should she do? My advice is to just open up another bank account somewhere else.

Any thoughts are appreciated.
Thanks

$100k per account -- if she has a checking account and a savings account, and the money is split between them, she's okay.

I believe you're correct in your concern, that anything over $100k is not insured. There are ways to have more than $100k insured at a single bank - you can read details at this link:
http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html
But if her situation is as you've stated, she should probably open an account at another FDIC-chartered bank and move some of that money.
(Is her current bank FDIC insured?!)

And of course, if that money is just "sitting there", you might convince her to put some in a Money Market Savings Account and maybe some in CDs at the bank so she will earn substantially higher interest. A bank rep can explain to her the differences in regular savings, checking, MMSA, CDs, the ease at getting to her money, safety, etc. (I'm assuming she doesn't want to invest in the market, mutual funds, bonds, etc - that's how my mom is... wants it all in her local bank)

Good luck,
Rookie

$100k per account -- if she has a checking account and a savings account, and the money is split between them, she's okay.

I'm not sure your example is correct Puck. Here is an excerpt from the link I posted above:

"Coverage Over $100,000
Single Accounts
These are deposit accounts owned by one person and titled in that person’s name only.... All of your single accounts at the same insured bank are added together and the total is insured up to $100,000. If you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000."

However, there are ways to have much more than $100k insured by the FDIC at a single bank... for details, go to: http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html