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Gary Zimmerman, MaxMyInterest - SVB, FDIC, & Improving ROI on Cash | #471

The Meb Faber Show - Better Investing

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Do You Understand FDIC Insurance Coverage?

FDIC insurance coverage is actually very simple. The idea was that as an individual depositor, you don't have the tools and capability to measure the soundness of the bank where you keep your money. And so by having multiple sources of liquidity, by spreading your cash out across multiple banks, there's no single point of failure. You are insured and protected by the FDIC which is backstop by the full faith and credit of the US government.

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