Bank accounts with over $100,000. What happens?

I have my bank accounts with Citigroup, and I pretty sure Citigroup will not go under, however, I am concerned a bit. What happens to the monies within the bank that is over $100,000? FDIC will not cover. Do banks have additional coverage? Can the account owner purchase their own insurance to ensure the money would not be lost if the bank goes bankrupt? Looked on the site, could not find anything. Also looked on Bank of America, WaMu, and Chase. Nothing either.

 

They say that they have coverage or that you can make changes to sort of trick the system but the proof of the pudding is in the eating. I had a claim against the government in 1992 and I learned one thing from that experience and that is that they are corrupt and have no qualms about fucking you over. There are plenty of banks out there and so I use them.

 

How do you assess the risk of your bank going broke?

 

That is what I am trying to find out. Can't have ten different banks to hold my money. But I am concerned. That is why I am thinking in purchasing insurance or something. Just do not know if this is available.

 

Are you sure the insured sum is that low? The cash balance in most German banks are insured to the millions (per account).

 

banks don't have additional insurance coverage. why do you need to put all your money into the bank? usually their credit interest rate sucks.

i spread my money across money market funds and have a few CDs. MMF's arent insured but at least they're transparent with what they do with your money, so you can feel a little safer.

or just buy treasuries.

 

If I was worried about the solvency of a bank. The first place I would look would be big charts for the bank's stock trend.

 

Do any German banks insures up to 8 figures? Do they accept foreign clients? Do you have a list of them? Contact info?

thanks

 

I also run a business aside my trading. Can't really have it all in cash.

 

Most of them do insure 9 figures and more. As long as the bank is member at the Deposit Protection Fund of the Association of German Banks. The Deposit Protection Fund covers liabilities to each customer up to an amount equal to 30% of the bank's core capital. Examples:

comdirect bank (163 million Euro per client)
"Aktuell beträgt die Einlagensicherung der comdirect bank EUR 163,570 Mio. pro Kunde."

Postbank (1.23 billion Euro per client)
"Pro Kunde sind die Einlagen bei der Postbank bis zu 1,23 Milliarden Euro abgesichert."

I doubt that foreign residents can open an account. You have to present a German ID card, but it's worth asking them to make sure.