> What do you think those extra points of interest were held back for in the first place?
Definitely not FDIC insurance.
A "Capital One 360 Performance Savings" account gets 4.25% APY with full FDIC coverage.
A "Capital One 360 Savings" account gets like 0.2% APY with full FDIC coverage.
Clearly they don't actually need to eat 4% APY in order to get FDIC, or else the first type of saving account would be a bad one to offer.
Anyway, the FDIC is a promise from the government that they'll cover your cash, and so is a treasury. Treasuries and FDIC insurance both have roughly the same risk, which is that of the US government collapsing entirely.
Definitely not FDIC insurance.
A "Capital One 360 Performance Savings" account gets 4.25% APY with full FDIC coverage.
A "Capital One 360 Savings" account gets like 0.2% APY with full FDIC coverage.
Clearly they don't actually need to eat 4% APY in order to get FDIC, or else the first type of saving account would be a bad one to offer.
Anyway, the FDIC is a promise from the government that they'll cover your cash, and so is a treasury. Treasuries and FDIC insurance both have roughly the same risk, which is that of the US government collapsing entirely.