[robraven]

Does this mean it's not smart to store more than 250k in robinhood? (I don't, just wondering)

[1123581321]

You shouldn’t store more than $250k in cash in any kind of bank or brokerage due to the insurance limit (unless the bank has account insurance beyond $250k.) Investments are different, of course.

Edit: I forgot about the details of the limit. Thank you all.

[dec0dedab0de]

EDIT: According to the link shared by mortenjorck this is incorrect. A banker explained this to me a while ago, and I just took their word for it. I might have to call my mom now. I'll leave this up so that anyone else with the same misconception will know its wrong

It's actually per bank, per type of account. So $250k in savings accounts, $250k in checking, $250 in Money Market, etc.

[Schweigi]

Interactive Brokers introduced a Bank Deposit Sweep Program this year. They distribute cash over 10 banks to provide up to $2.5mio FDIC insurance.

[bogomipz]

The limit is actually per each ownership category:

https://www.fdic.gov/deposit/covered/categories.html

[notyourday]

Per bank per beneficiary with John Smith POD Jane Smith account being considered different beneficiary than John Smith account.

[ptero]

Brokerages love fat cats and most provide free high quality additional insurance up to at least 5-10M. What happens if brokerage fails? My bet is its insurance, reinsurance or gov't would bail investors out (ask Lehman clients many of whom had accounts a LOT bigger than 250k). My guess is that it is safe to keep at least 5M in a single brokerage, but decide for yourself.

[crgt]

Many Lehman clients got pennies on the dollar..

[jonwachob91]

Do you have any links or reading material about what lehman clients were able to pull out?