FDIC insurance is foundational to the US banking system. Accounts are insured against failure by the federal government. Yet this insurance only offers $250,000 per deposit account in coverage – an amount that has not been changed in years. With the rapid rise of inflation, largely due to government spending, the value of a dollar has diminished dramatically.
In 2008, the amount of insurance was temporarily increased from $100,000 to $250,000. The amount was made permanent under Dodd-Frank. But a dollar in 2008 was worth quite a bit more back then ($1.41), meaning the FDIC insurance has lost almost half of its value.
Flourish, a Fintech that offers RIAs [registered investment advisors] a cash management program to improve insurance, now offers individuals up to $6 million in coverage and shared or joint accounts $12 million in FDIC insurance.
The company reports that over 650 RIAs are now managing over $1.5 trillion in combined assets via Flourish.
The company says it continues to expand its bank network to further increase coverage for clients.
Max Lane, CEO of Flourish, says:
“By offering holistic financial planning, advisors get visibility into held-away assets and help their high net worth clients keep funds safe while also earning significantly higher yields than they would at big, money-center banks.”
