[dreewf]

We are a small business (less than 100 employees). We have about 50 large paying customers. As soon as SVB happened we transferred almost all our money out of FRB to our other banks and only left a small amount of the money ($185k) under the ‘insurance cap’. But we still have payroll going out, we have deposits coming, etc. so we started transferring all that over. It’s not simply “not exceeding the insurance cap’. It’s a huge pain and takes a very long time since our customers are huge companies and updating our banking information with them is a long drawn out process.

Well, we transferred most of the customers over this last month, but one of the customers just yesterday made a deposit of $485k. $485k + $185k is well over the insurance limit. I believe it takes 3 days or so to clear so we wouldn’t have been able to transfer it out immediately. Maybe we can ask them to cancel it on Monday, i am not sure yet. As a small business our cash flow is very tight. We don’t have experts on the team to juggle multiple banks and make sure all deposits are less than $250k or watching out in case the bank fails the day after. Maybe there are tricks like you mention but most small businesses do not have experts on this stuff and I don’t think we should have to be.

[ericpauley]

Sure, maybe changing is hard in the short term. The solution would have been to not do highly consolidated banking over limits in the first place.

> We don’t have experts on the team to juggle multiple banks and make sure all deposits are less than $250k

My key point is that there are products that do this and also yield higher than retail bank accounts. Difficulty is a straw man. If retirees on bogleheads can do it so can you.

[Scoundreller]

Is there a bank out there that advertises that they don’t do any long term fixed loans with their checking account deposits?

Seems like there should be a big market for that kind of thing. No idea why anyone holding large $$$ would go with anyone else.

[ericpauley]

Money markets. You can loan your money overnight to the fed at zero risk for 4.5% right now.