Ways Businesses Can Protect Large Deposits Over $250,000

With at least four bank failures in 2023, businesses and individuals alike may be concerned about the funds deposited with their bank.

The Federal Deposit Insurance Corporation (FDIC) is charged with regulating and monitoring financial institutions to make sure they are sufficiently capitalized and managing risk responsibly. The FDIC also provides automatic standard deposit insurance that protects bank account owners’ deposits in the event of a bank failure, but only up to $250,000 per depositor, per insured bank, for each account ownership category.

If an individual or a business has cash deposits over $250,000 there are several methods for avoiding or limiting risks of loss upon the failure of a depository bank. Read more about how to protect large deposits.