Sponsor Message:
Non Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Fdic Insurance And Bank Subsidiaries  
User currently offlineAirstud From United States of America, joined Nov 2000, 2667 posts, RR: 4
Posted (1 year 7 months 3 weeks 3 days 4 hours ago) and read 1231 times:

OK, a.net financial experts.

As I understand it, insured deposits at FDIC member banks are insured up to $250,000 per depositor, per institution. So if I put $500,000 into a savings account at Bank of America ('cause investment-wise, that's the right thing to do with $500,000), only $250,000 of it will be insured. And if I think I'm being so smart by opening a checking account at BofA and putting $250,000 in there, or into a BofA CD, then I would in fact be wrong about that smartitude, because the $250K cap applies to all deposits I have at that institution. So I would show marginally more smartitude by putting that other $250K into a account at First Niagara.

Now, what about banks with subsidiaries? If I put $250K into an account at Bank of Albuquerque, and the other $250K into an account at Bank of Oklahoma, are both deposits insured (even though Bank of Albuquerque is owned by BOK)?

Same question would apply about different subsidiaries of the same parent company, e.g. First Nat'l Bank of Colorado and First Nat'l Bank of Kansas; both of which are owned by the First National Bank of Nebraska   


Pancakes are delicious.
2 replies: All unread, jump to last
 
User currently offlineDreadnought From United States of America, joined Feb 2008, 8841 posts, RR: 24
Reply 1, posted (1 year 7 months 3 weeks 2 days 19 hours ago) and read 1185 times:

Quoting Airstud (Thread starter):
So I would show marginally more smartitude by putting that other $250K into a account at First Niagara.

The determination is according to legal entities which are considered to be independent banks by the FDIC. I have not done any research on the banks you mention, but assuming that First National Bank of Nebraska simply owns a majority share of First Nat'l Bank of Colorado, if one or the other fails does not mean the other fails with it. Both would be independent - with completely separate management and accounts. Each bank has its own insurance policy with the FDIC.



Veni Vidi Castratavi Illegitimos
User currently offlineAirstud From United States of America, joined Nov 2000, 2667 posts, RR: 4
Reply 2, posted (1 year 7 months 3 weeks 1 day 4 hours ago) and read 1109 times:

Yeah... I guess my question is, is the separateness of the institution determined by its having its own charter (whether as an NA, FA, FSB, OBE, WKRP, whatev.... or is there something else that establishes separateness for the FDIC's sake.

It is kind of an academic question, as I ain't got no $250K (and wouldn't stash it in a blamed savings account if I did  )

There's just still way too many banks failing these days...



Pancakes are delicious.
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Grameen Bank And Microcredit: Thoughts? posted Mon Jan 14 2008 13:13:23 by MaverickM11
Venezuela Exits IMF And World Bank posted Tue May 1 2007 11:48:19 by Cedars747
Woman Asks For Bank Statement And Gets 75,000 posted Mon Jan 29 2007 17:05:31 by RichardPrice
Removing Hats And Sunglases At The Bank. posted Sat Jan 28 2006 06:41:45 by CcrlR
Healthcare Confusion And Insurance Coverage posted Wed Dec 24 2003 05:24:08 by Zak
Merger Between Bank Of America And Fleet. posted Mon Oct 27 2003 23:36:22 by FunFlyer
Website Flightlevel350.com Neglected And Abandoned posted Sat Jan 26 2013 20:43:08 by BEG2IAH
Bank Of America: WTI Oil $50/bbl Possible By 2015 posted Mon Jan 21 2013 12:46:42 by Planemaker
Great Snorkeling And Beaches In Turkey? posted Fri Jan 18 2013 09:43:21 by Fallap
Britain And The EU - What Does The Future Hold? posted Tue Jan 15 2013 12:43:10 by kaitak