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Using Banks and Bank Accounts/How to protect-insure your deposits that's over $250,000?

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Question
Hi,

This is just a hypothetical question. Let's say i won $20 million lotto and i want to put the money in really safe place. The obvious place to put is the bank.

I have read this: "Large deposits and wholesale liabilities guaranteed under the Scheme as at 31 March 2010 will remain guaranteed, for a fee, for the relevant term. Separate arrangements will continue to apply for deposit balances totalling up to and including $1 million per customer per institution and changing to $250,000 from 1 February 2012. Such deposits are guaranteed without charge."




If i want to insure the whole $20million, what do i have to do in countries like in the U.S and Australia?

If i have to pay more for insurance, how much more will i have to pay to insure my $20million is secure and to who do i have to pay?

Who do i pay the money to the government or bank?

If i put the money in a Australian bank and lost the money by fraud, will the bank rein-burst my money if they found i have nothing to do with the fraud?

Where do rich people put their money? Do they pay extra to the bank to insure their savings?

Answer
Hi Oliver,

That is a great question, there are ways to structure your money if you are worried about insurance for example different beneficiaries and signers.

Here comes the issue, with an amount of 20MM youre going to have a hard time.  Usually people invest a nice portion of it and place the rest in FDIC accounts.

There are also SIPC options for certain insurance investments (depending on age).

All in all usually people with those kind of funds have structured investments and deal with private banking divisions.

To answer your question insuring 20MM to the fullest would be nearly impossible unless you will put it under your mattress.

Using Banks and Bank Accounts

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George

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Anything pertaining to Commercial or Retail Banking. Including, Interest rates, Lending, as well as Prime Rate questions. Also can help with online banking questions including all regulations.

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Retail and Commercial banking since 2002. Currently employed as an Assistant Vice President at a Commercial Bank.

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