How Can We Get FDIC Protection for $2 Million?

Photo by Jonathan Cooper on Unsplash
Question:
Can FDIC protection for certificates of deposit be purchased by a married couple (with four adult children) to cover $2 million?
Response:
Yes. This, of course, all of the sudden seems more relevant given the recent failures of Silicon Valley, Signature and First Republic Banks.
There are a number of ways to maximize the $250,000 FDIC insurance. It is provided per account, per owner. So, it’s possible to protect $1 million by having one account in your name, one in your spouse’s, and one in joint names. The accounts in each of your names would each receive $250,000 of insurance and you would each receive $250,000 of coverage for the account in joint names. You could do this again at another bank to receive the $2 million of protection. Or you could create additional accounts at the original bank in joint names with your children.
On the other hand, while the FDIC only protects $250,000 per account, it has stepped in and fully insured all the accounts in the failed banks. Only the stockholders lost their money.
Putting off planning your estate?
Don’t know where to start?
This simple-yet-comprehensive guide provides everything you need to know (in plain English).
FDIC is increasing insurance for trust accounts effective in April 2024. Here is a link to an article that explains the changes:
https://www.wealthmanagement.com/estate-planning/fdic-changes-insurance-coverage-trust-bank-accounts