Which is not the same as backed 100% by real dollars. It’s just another level of guarantees, just like the guarantees given by Tether. Obviously it’s very reasonable to trust one more than the other, but neither are backed 100% by real money.
Dollars are created by the Federal Reserve, not Congress.
Banks are backed by FDIC insurance which, although it has been able to pay each claim ever filed, did get cold feet in the 2015 crisis and obviously does not hold a dollar for each insured dollar. In fact some cursory research shows they hold about $6 for every $10000 and in a major collapse like the 2015 crisis, which could have been even worse, they could very well get in trouble.
> Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category
If you want have more than $250k insured in regular accounts, spread it across multiple banks (or put some in a joint acct, but that has its own risks).
Opening a chequing account and a savings account at the same bank doesn’t give you $500k of coverage if you were to put 250k in each.
Thank you for this. I was under the assumption one could open any number of accounts at the same bank and get the same insurance guarantee. It is good to read the specific language.
Then again, neither is a typical bank account.