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That got me wondering why anyone leaves amounts over 250k anywhere else.

If you have 5m are you going to open 20 bank accounts? If there's a wobble you'll need to dig out a lot of credentials to move your money, and you'd end up moving it to a TBTF anyway.



If you have $5 million why do you need it in demand accounts?

Treasuries (notes, etc) are backed by the full faith and credit of the USG and are available in effectively unlimited amounts.


About that 'full faith and credit' thing ... you have to have full faith in congress to give that credit.

https://www.cnbc.com/2023/01/13/us-will-hit-its-debt-limit-t...


Thankfully, worshipping at the altar of the US Dollar is the only unshakably bipartisan activity in US politics.


The value of your treasuries will tank if interest rates rise. If you held cash, you could take advantage of that situation.


If you have that kind of money in cash you pay someone to do that for you. If you want access to your money you don't juggle credentials, you call your banker and ask.

Actually even if you don't have millions you can use sweep accounts that automatically spread money across multiple bank accounts. Fidelity has one that anyone can use.




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