Beyond the FDIC Safety Net: How to Protect Large Cash Savings in San Diego

So what happens if your nest egg is bigger than that? How can you keep your cash protected without spreading your money so thin that it’s impossible to manage?

At Peaceful Warrior Law, we help families across San Diego take control of their financial security through smart estate planning, asset protection, and trust structuring, and yes, that includes making sure your savings are fully protected.

Understanding the FDIC Safety Net

The Federal Deposit Insurance Corporation (FDIC) was created in 1933, after the Great Depression wiped out thousands of banks and millions of savings accounts. Today, FDIC insurance acts like a financial life jacket. You may not think about it every day, but you’ll be grateful it’s there if the waters ever get rough.

Here’s the key: FDIC insurance isn’t a flat $250,000 cap per person. It’s $250,000 per depositor, per bank, per ownership category. That means with the right planning, you can multiply your coverage, but only if your accounts are titled correctly.

Let’s look at an example:

Maria, a San Diego business owner, has three accounts at her local bank:

• A checking account with $100,000 (covered)
• A joint savings account with her husband worth $300,000 (covered up to $250,000 each)
• An IRA with $200,000 (covered under the retirement category)
  
  

In total, she has $450,000 protected under FDIC insurance, all within one bank.

That’s great news. But what if she had $800,000 in savings? That’s where strategy comes in.

When Your Savings Exceed FDIC Limits

If your savings surpass the FDIC limit (a good problem to have), it’s time to think strategically. Protecting your money isn’t just about diversifying investments; it’s about structuring your cash intelligently.

Here are some ways to safeguard your funds:

1. Spread Funds Across Multiple Banks

One of the simplest ways to increase protection is to keep your deposits in multiple FDIC-insured banks.

For example, if you have $750,000 in cash, you can hold $250,000 in three different banks, giving you full FDIC coverage across the board.

It’s the same concept as not putting all your eggs in one basket.

The tradeoff? More accounts to manage, which is where having a trusted estate planning lawyer in San Diego comes in handy. We can help ensure each account is titled correctly and aligned with your trust or estate plan.

2. Use Different Ownership Categories

Married couples can multiply their protection at a single bank by using different account types. For example:

• Husband’s individual account: $250,000
• Wife’s individual account: $250,000
• Joint account: $500,000 (covered $250,000 per person)
• Husband’s IRA: $250,000
• Wife’s IRA: $250,000
  
  

That’s $1.5 million protected at a single institution.

Proper titling and legal review are key, especially if your accounts are part of a revocable living trust. One mistake in ownership setup could undo the protection you think you have.

3. Consider Certificate of Deposit (CD) Laddering

A CD ladder is a series of certificates of deposit with different maturity dates. You can open CDs at multiple banks to maximize FDIC protection while keeping some money liquid at all times.

Think of it as having a series of financial stepping stones that mature at different times, balancing safety, flexibility, and returns.

4. Look into Credit Unions and Cash Management Accounts

Credit unions offer similar coverage through the National Credit Union Administration (NCUA), which protects up to $250,000 per depositor.

Meanwhile, some brokerage firms offer cash management accounts that automatically spread your deposits across multiple banks, giving you extended coverage without extra work.

These options can be especially helpful for clients who want to protect large balances without juggling multiple institutions.

Bringing It All Together: Protecting What You’ve Built

Your savings represent a lifetime of effort and they deserve more than a “set it and forget it” approach. Whether you’re a San Diego business owner, a retiree, or someone planning for your family’s financial future, protecting your cash beyond FDIC limits is an essential part of estate and asset protection planning.

At Peaceful Warrior Law, we help you:

• Review and restructure your accounts for maximum protection
• Ensure your bank accounts align with your estate plan or trust
• Create a strategy that keeps your money safe, accessible, and tax-efficient
  
  

You’ve worked hard for your financial peace of mind. Let’s make sure your plan works just as hard to protect it, now and for generations to come.

We can help.