FDIC Guarantee

[just]

Sorry in advance for the first world ridiculousness of this question.

My inheritance is about to be transferred. I'm having it put into a new account with Ally with just my name on it. We also have an Ally joint account with our emergency fund. Combined they exceed $250,000 (just)

I know it's bonkers to keep that money at .7% right now, but I start crying everytime I think about it and for my mental health I need a few more months before dealing with it.

For FDIC Guarantee, I read ...

Deposit insurance for savings accounts covers $250,000 per depositor, per institution, and per account ownership category.

So based on 2 savings accounts, both with Ally, both with my name on it (one individual, one joint), is it guaranteed?

ETA: the inheritance account is just under 250k

[k3am]

I can't speak on FDIC for consumer accounts, everything I do is commercial. AFAIK, anything up to $250k would be covered. So if you have $260k, you've got a $10k uncovered exposure.

FDIC insurance only comes into play if the bank fails. I'm not super familiar with Ally, but they're a public company, and in the last TTM period ended 6/30/20, they did $1B in net income. In my estimate, not super likely to fail barring something catostrophic industry wide. 

This probably isn't something I'd stress too much about. If you're really worried, open an account somewhere else and park some funds there until you're emotionally ready to figure out the best way to manage the funds.

[froggy76]

I'm not an expert but from Googling this issue recently, I think you would be insured up to 250k on the sum of the new account + 1/2 of the joint account. Your husband is insured up to 250k on his half of the joint account.

I agree with the pp, though, I really wouldn't worry much and if you want to make sure you are fully insured, you can just move some amount of money to another bank for now.

[mich1]

Are you planning on leaving this money in this account for any length of time? Is there any reason why you can't have the money put into a money market account at a financial institution where you invest and when you feel up to it, start investing it? You just need a place to park it.

I'd probably do something like this instead.

[goldengirlz]

I agree with everyone else. You don’t need to make any major financial planning decisions right now, but if you’re concerned, maybe move part of your joint account to another financial institution — even just your checking account.

I’m so sorry for your loss.

[Stan]

If I’m understanding what you wrote, you will be fine. Is your solo account under $250k by itself? Also, 1-877-ASK-FDIC can be a good resource.

[madringal]

Yes, two accounts with two different ownership titles would EACH be covered up to 250k. You can use the tool to confirm.

edie.fdic.gov/index.html