Is it risky to keep all your money in a single bank?

Whilst it usually is for most of the customers who are banked, they still would like a mental satisfaction of having two accounts. Just in case!

The Basel III requirements in banks today, make them quite solid, however, they are not shielded from collapsing. The Basel framework makes the bank’s foundation stronger. So you actually good are well set in a single bank.

Unlike the United States, many countries do not have an FDIC (Federal Deposit Insurance Corporation) structure, where your deposits are guaranteed by the full faith and credit of the United States government for up to US$ 250,000.

In the US, if you have more than US$ 250,000 there are banking arrangements where banks will create multiple FBO (For-Benefit-Of) accounts for you, each limited to US$ 250,000, so, if you had US$ 5 Million, then you would get 20 bank accounts each insured up to the maximum amount.

Another time you would want to have multiple accounts is because another competing bank could be offering a product or service that your current bank does not offer or they are offering it at a rate that is much more attractive to you.