Although having more than 250,000 yuan deposited in a bank account is a good milestone, it may not be a good choice from a financial perspective.Concentrating such a large amount of money in a single institution may be risky, the asset allocation is not diversified Is, and that is not a good use of federal deposits.InsuranceCorporation (FDIC) Deposit Insurance Compensation. Financial management website GOBankingRates explains why deposits in a single bank account should not exceed $250,000.
In the event of bank default or failure, the FDIC provides $250,000 of insurance per insured account, but you can actually get more than $250,000 if you understand the details. The deposit insurance system provides separate protection for each insured bank, each depositor and each ownership category (ownership category), meaning that depositors only need to allocate their money across different account ownership categories.
Categories for natural persons include single accounts, joint accounts, revocable/irrevocable trust accounts, certain retirement accounts, etc.
For example, if all NT$300,000 is deposited into a single account, only NT$250,000 is insured; But if NT$100,000 is instead deposited into a single account, a joint account, and a retirement account, the entire amount of NT$300,000 is insured. Yuan is guaranteed. Although the risk of bank default or failure may be low, it is always good to try to keep your assets at as little risk as possible.
traditionalcheckchecking account orSavingsAccount (Savings Account) interest rates are really unattractive. FDIC data shows that the national average interest rate for checking accounts is only 0.07%, and the average deposit interest rate for savings accounts is 0.47%. If you deposit 200,000 yuan each in your savings account and checking account, the average annual interest rate is only 1,080 yuan, or an average return rate of 0.27%. And other ownership categories such as retirement accounts offer higher potential returns.
So how should savings actually be allocated? GOBankingRates points out that many experts recommend putting three to six months of income into a savings account as an emergency fund. If your income is unstable or self-employed, you should add up to a year’s income to cover unemployment or unexpected large expenses… In a checking account, you can’t keep more than one to two months’ worth of income. , because the interest rate is very low.