Maintaining FDIC coverage for larger balances — The FDIC insures deposits up to the standard limit per depositor per insured bank per ownership category. When your cash holdings exceed that limit in a single ownership category at one institution, a common and practical strategy to preserve full insurance is to spread deposits across multiple FDIC-insured banks and/or use separate ownership categories (for example, individual vs. joint accounts). This approach keeps funds inside the safety net without changing the insurance rules. Many cash-management programs and some brokerages also offer sweep programs that distribute funds across multiple banks to provide aggregated FDIC coverage, though you should read the disclosures to understand how coverage is applied.

Operational considerations and recordkeeping — While distributing funds increases protection, it also increases administrative overhead: more accounts to monitor, more login credentials, and potentially different interest rates and fee structures. Keep clear records of where funds are held and the ownership category for each account. Periodically review aggregate balances to ensure you’re not inadvertently exceeding limits in one category. If you use sweep or brokerage programs, verify exactly how the program allocates funds and whether coverage is pass-through FDIC insurance or another mechanism. Balance safety, liquidity, and yield when deciding how to split deposits, and consult bank disclosures or a trusted advisor for complex ownership structures (trusts, business accounts).