Typically liquid assets like cash or cash equivalents (CD’s and other short term investments that can be easily converted to cash) are held in a bank (or multiple banks) that are FDIC insured.
The FDIC insures account owner against loss for up to $250,000, so you can split your accounts among several banks.
Do millionaires put their money in the bank?
The bigger issue is that most millionaires don’t have all their money siting in the bank. They invest in stocks, bonds, government bonds, international funds, and their own companies. Most of these carry risk, but they are diversified. They also can afford advisers to help them manage and protect their assets.
What bank is best for millionaires?
The most popular banks for HNW customers, according to surveys and industry studies, include J.P. Morgan Chase, Bank of America, and Wells Fargo.
Where do billionaires store their money?
The reason they are billionaires is, that they do not store their money in banks, as this is the least profitable thing you can do. The way a bank makes money, is taking the money you stored there and use it for investments. So, there are only 2 reasons for having large amounts of money stored in banks.
What banks insure millions?
Actually FDIC insures $250,000 per depositor, per ownership category, per FDIC-insured bank. For most of us, the deposit account is the most common: savings, money market, checking or CD.