So we are fixing to put a substantial amount of money in Fidelity. We will eventually have about 75% Treasury bonds and 25% S&P 500 as we are getting ready to retire. I don't fully understand FDIC and the limit of 250K. Lets say you have 500K and open a Fidelity account investing all of it in bonds and index funds. I would only have 250K insured? Would I have to open another account like Charles Shwab and split the 500K between the two? We will be opening a joint account between me and my wife. Thanks
Question about FDIC
- Thread starter scottl73
- Start date
FDIC is insurance for bank accounts. It won’t cover investment accounts at Fidelity or investments in stocks and bonds.
It may cover some CDs that you buy on Fidelity brokerage.
It may cover some CDs that you buy on Fidelity brokerage.
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
SPIC covers brokerage accounts.
See Here:
https://www.schwabmoneywise.com/essentials/understanding-fdic-and-sipc-insurance
See Here:
https://www.schwabmoneywise.com/essentials/understanding-fdic-and-sipc-insurance
Al18
Full time employment: Posting here.
Fidelity lists their FDIC and SIPC coverage information at https://www.fidelity.com/why-fidelity/safeguarding-your-accounts
Fidelity carries excess coverage for SIPC “ Within Fidelity's excess of SIPC coverage, there is no per customer dollar limit on coverage of securities, but there is a per customer limit of $1.9 million on coverage of cash awaiting investment.”
None of this insurance protects your balance if the bond index or stock drops in value. FDIC protects you if the bank closes, and SIPC coverage protects you if the brokerage closes.
Fidelity carries excess coverage for SIPC “ Within Fidelity's excess of SIPC coverage, there is no per customer dollar limit on coverage of securities, but there is a per customer limit of $1.9 million on coverage of cash awaiting investment.”
None of this insurance protects your balance if the bond index or stock drops in value. FDIC protects you if the bank closes, and SIPC coverage protects you if the brokerage closes.
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