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It’s not a lie.

Certainly for up to $250,000 deposited at an FDIC insured institution, it is absolutely true that you can assume that you have cash deposited and available. If at any time the bank gets itself into a position where they can’t make good on that, FDIC will fix it so you still have your cash.

That is precisely the mechanism that the federal Government makes available that gives you a place to park your cash.



As a note, this is one reason to still keep some paper checks around for your FDIC accounts.

Because when SVB closed on Friday and reopened on Monday, you could have still used a paper check during that time and it would be honored; but online access may have been shut off.


Does writing a check on a bank you know to be insolvent count as writing bad checks (which is a felony in some states)?

IANAL and it’s quite unclear to me.


I would think that it wouldn't be an issue, so long as your total for written checks that have not cleared is both not over your balance amount, and not over the FDIC $250k limit, but IANAL as well.


Ah, I hadn’t considered the FDIC insurance aspect. I was imagining writing checks that you had reason to believe weren’t worth anything.




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