Banks in the US, active with the FDIC, only insure $100,000. So if a person has, for example, 10 million dollars and wants to deposit the money in a bank, does he have to look for 100 banks or is there another way to invest that is as low risk as a savings account?

Banks in the US, active with the FDIC, only insure $100,000. So if a person has, for example, 10 million dollars and wants to deposit the money in a bank, does he have to look for 100 banks or is there another way to invest that is as low risk as a savings account?
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1 Answer

Answer :

A person with 10 million dollars probably has a diversified investment portfolio with a variety of risk levels and return levels. As a result, his insurance is that not everything will collapse at the same time. Banks are very low risk, especially as they’re insured, but they’re also very low return, which means you can barely get above inflation; since most other investments, well managed, can get you 5%-10% above inflation, banks are a very poor choice for someone with lots of money to invest.
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