Question 16
If you have more cash than the standard FDIC limit and want to keep it all insured, there are practical ways to expand coverage without changing the insurance itself. Options include using multiple FDIC-insured banks, dividing funds across different ownership categories (individual, joint, trust), or using brokerage sweep accounts that are FDIC-eligible through program banks. The idea is to avoid concentration in a single ownership category at one bank so more of your deposits fall under protection. This question tests the simple, common approach people use to maintain full deposit insurance for larger balances.
Which is a common method to keep more of your cash within FDIC insurance limits?
Did You Also Know...
By Wise Wallet
Retirement accounts commonly impose early-withdrawal penalties to discourage using tax-advantaged savings before retirement.