The bank balance for a company is $1.2 Millions. Is this amount excess of FDIC insured?
If you invest, you need to pay tax.
What is your suggestion?
If you invest, you need to pay tax.
What is your suggestion?
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What's wrong with paying tax on earnings? If you make 10k and pay 5k in tax you still are ahead 5k? And if you invest the funds they probably would not be insured. You could invest in US Treasury notes. That should be secure. -
Fdic
Go to this link http://www.fdic.gov/consumers/consum.../fdiciorn.html and it might provide the answers you are looking for regarding the amounts that would be insured under FDIC.
Make the money work, keep people employed and pay the tax on the earnings.
SandyComment
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Sandy - Limit
It's $100K isn't it? But could he open 12 different accounts at the same bank and get each one insured, or would it be 100 total at that bank?Comment
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$100k
Bart,
I read business accounts as being insured up to $100k at ONE institution. So to stay within the limit, the business would have to have no more than $100K at any one institution, so in this case 12 different banks. And those accounts that are insured at the bank are checking, savings, cd's NOT investments, annuities or stocks purchased through the Banking Institution.
SandyComment
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ST Treasury Notes
Suggestion,
Have your bank put the million in a short term treasury note (s), and you need not worry about safety. If they need a million free for working capital, then they are stuck. So I would say just be sure it's a good bank, highly rated by Morningstar or Value Line. Stay away from small banks who's loan portfolio is not well diversified. You rarely hear of a large bank going bankrupt. There are no Enron's in the banking industry becasue it's so tightly regulated. Small banks with aggresive loan portfolios is where the problems are.
By the way, banking has gotten so competive, there are now 12 banks withing 3 blocks of my office.Comment
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