Cash management accounts exist to automatically sweep money between multiple banks to maximize FDIC coverage. These programs (https://www.moneycrashers.com/best-cash-management-accounts) can do $1-2M in FDIC coverage with debit cards, ATM, and check writing access. That should be enough for wealthy folks to manage their day-to-day spending. Anything beyond that should go into federal bonds which are protected by the 14th amendment to the US Constitution. Large purchases, like houses, boats, aircraft, etc. can be planned for in advance.
It's kind of a standard plan for high net worth individuals. I'd be very surprised if Oprah was keeping $500M in a regular bank.
Unless these funds were irregular. To see this kind of cash stockpiled is very unusual. Most amounts of this size would be safely invested in high yield, relatively secure investments and highly diversified to mitigate risk across multiple investment firms and platforms.
Cash management accounts exist to automatically sweep money between multiple banks to maximize FDIC coverage. These programs (https://www.moneycrashers.com/best-cash-management-accounts) can do $1-2M in FDIC coverage with debit cards, ATM, and check writing access. That should be enough for wealthy folks to manage their day-to-day spending. Anything beyond that should go into federal bonds which are protected by the 14th amendment to the US Constitution. Large purchases, like houses, boats, aircraft, etc. can be planned for in advance.
It's kind of a standard plan for high net worth individuals. I'd be very surprised if Oprah was keeping $500M in a regular bank.
Unless these funds were irregular. To see this kind of cash stockpiled is very unusual. Most amounts of this size would be safely invested in high yield, relatively secure investments and highly diversified to mitigate risk across multiple investment firms and platforms.
Agreed.
If this story is actually true, it does seem suspicious that so much cash was just left in a bank.