Can a multi-millionaire keep their millions in a Chase account?
Chis: There is no limit. A person could keep millions in a savings or checking account if they wanted to. Someone with that amount of money would probably at least put it into bond funds, some of which are tax-free for both state and federal, and which earn more.
There is also the issue of an account only being insured up to a certain amount. For someone with a lot of money, if they put it in a savings account at all, it's probably for safety. So they would have to spread their money among various banks, each insured for $250k per account. That only works with a few million. To hold a really large amount of money, they would put it a bank that is large, hoping that the Federal Government would judge them Too Large To Fail if something terrible happened, and bail out account holders.
But there is a limit on how much is covered by insurance in case the bank goes out of business
Yes. However, they would not keep cash in one bank for long. They always put their money to work and make more money.
Hmm! Banks cannot guarantee over a certain amount!
FDIC only covers $250,000.