Expanded FDIC Deposit Insurance Protection › Preferred Bank (2024)

All deposits at Preferred Bank are covered by the standard FDIC Insurance amount of $250,000 per customer. If your deposits exceed $250,000, we offer additional FDIC insurance coverage through IntraFi® Network Deposits CD accounts and DDA/MMDA accounts. When you utilize these services, we’ll split your deposit into increments less than $250,000 and place these funds across our network of well-capitalized banks. With this arrangement, your entire deposit will remain fully protected, while you continue to work with Preferred Bank.

Certificate of Deposit (CD) Accounts

With CD accounts, you can access insurance on deposits up to $50 million and earn interest rates comparable to CDs. Maturities range from 4 weeks to two years.

Demand Deposit Account (DDA) & Money Market Deposit Account (MMDA)

DDA/MMDA allows you to place funds into demand deposit and/or money market deposit accounts. You can deposit up to $100 million for each account type. With this option, you may receive expanded insurance protection and still have the flexibility to access your funds when you need them.

CD vs DDA/MMDA


CDDDA/MMDA
Access to FundsEarly withdrawals before maturity are subject to penaltyAnytime without penalty
Maximum Deposit Limit$50 Million$100 Million
Combined Deposit Limit*$150 Million$150 Million
Account HoldersCustomers who want FDIC insurance coverage on large deposits and do not require immediate access to funds.Customers who want FDIC insurance coverage on large deposits and need liquidity with their funds.

1.* Higher deposit limits may be accepted on exceptional basis.

2. Funds may be submitted for placement only after a depositor enters into the IntraFi Network Deposits CD or DDA/MMDA Deposit Placement Agreement with Preferred Bank. The Agreement contains important terms and conditions regarding the placement of funds by us. Please read the agreement carefully before signing it. Both CD accounts and DDA/MMDA accounts incur a monthly fee.

3.Contact our branch for the details or call us toll-free at (888) 673-1808.

Expanded FDIC Deposit Insurance Protection › Preferred Bank (2024)

FAQs

Can I have more than $250000 of deposit insurance coverage at one FDIC-insured bank? ›

Q: Can I have more than $250,000 of deposit insurance coverage at one FDIC-insured bank? A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled.

How can I maximize my FDIC coverage at one bank? ›

For example, if the same two co-owners jointly own both a $350,000 CD and a $150,000 savings account at the same insured bank, the two accounts would be added together and insured up to $500,000, providing up to $250,000 in insurance coverage for each co-owner.

What bank will insure $100 million dollars? ›

Enjoy the VeraBank relationship you know and trust, with deposit insurance up to $100,000,000.

How do I get around my FDIC insurance limit? ›

Here are four ways you may be able to insure more than $250,000 in deposits:
  1. Open accounts at more than one institution. This strategy works as long as the two institutions are distinct. ...
  2. Open accounts in different ownership categories. ...
  3. Use a network. ...
  4. Open a brokerage deposit account.

Where do millionaires keep their money if banks only insure 250k? ›

Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.

What should I do if I have more than 250k in the bank? ›

How to Insure Bank Deposits Over $250,000
  1. Open an Account at a Different Bank. FDIC coverage limits are per bank. ...
  2. Add a Joint Account Owner. ...
  3. Split Funds Between Ownership Categories. ...
  4. Use a Network Bank.
Jul 20, 2023

Does FDIC cover $500,000 on a joint account? ›

This is their only account at this IDI and it is held as a “joint account with right of survivorship.” While they are both alive, they are fully insured for up to $500,000 under the joint account category.

Does adding beneficiaries increase FDIC coverage? ›

Note on Beneficiaries: While some self-directed retirement Accounts, like IRAs, permit the owner to name one or more beneficiaries, the existence of beneficiaries does not increase the available insurance coverage.

What does expanded bank deposit mean? ›

the Expanded Bank Deposit Sweep and Standard. Bank Deposit Sweep refer to the total coverage. that an account holder has at each bank, including. any CDs.

What bank do most millionaires use? ›

The Most Popular Banks for Millionaires
  1. JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. ...
  2. Bank of America Private Bank. ...
  3. Citi Private Bank. ...
  4. Chase Private Client.
Jan 29, 2024

Does FDIC insurance cover multiple accounts with the same bank? ›

The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000.

Is it safe to have a million dollars in one bank? ›

Keeping all of your money at one bank can be convenient and is generally safe. However, if your account balances exceed the deposit limit that's insured by the FDIC, some of your money may not be protected if the bank fails. And if you're a fraud victim, having cash all in one place could compromise more of your money.

Is it bad to keep more than $250,000 in one bank? ›

It's also important to keep FDIC limits in mind. Anything over $250,000 in savings may not be protected in the rare event that your bank fails.

How to maximize FDIC insurance at one bank? ›

The other way to maximize FDIC insurance is to have accounts at the same bank in different ownership categories. You get up to $250,000 in coverage for each ownership category, even within the same bank.

Are multiple CDs FDIC insured? ›

The short answer is yes. CDs are federally insured by the FDIC. The FDIC insures deposit accounts up to $250,000 per depositor, per FDIC-insured bank and per ownership category. This includes savings and checking accounts as well as money market accounts and CDs.

Can you have multiple FDIC insured accounts at the same bank? ›

The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000.

What is the maximum FDIC insurance per account? ›

FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category.

Does adding a beneficiary to a bank account increase FDIC insurance? ›

Note on Beneficiaries: While some self-directed retirement Accounts, like IRAs, permit the owner to name one or more beneficiaries, the existence of beneficiaries does not increase the available insurance coverage.

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