Safeguarding Millions: How Millionaires Insure Their Money

As the old saying goes, “Money can’t buy happiness, but it can buy a boat big enough to pull up right alongside it.” For millionaires, the pursuit of financial security is not just about accumulating wealth; it’s also about protecting it. In a world where economic uncertainty can strike at any moment, ensuring that their hard-earned fortune is safeguarded is a top priority. So, how do millionaires insure their money? Let’s dive into the strategies they employ to keep their wealth secure.

The Tried-and-True: FDIC-Insured Accounts

One of the most commonly used methods for insuring money is through FDIC-insured accounts. The Federal Deposit Insurance Corporation (FDIC) is a government agency that provides insurance for deposits held at member banks. This insurance covers up to $250,000 per depositor, per account ownership type, per financial institution.

Millionaires often spread their wealth across multiple FDIC-insured accounts at different banks, ensuring that each account stays within the insured limit. This diversification strategy not only protects their money but also provides peace of mind, knowing that even if one bank were to fail, their deposits would remain secure.

The Credit Union Alternative: NCUA-Insured Accounts

For those who prefer credit unions over traditional banks, millionaires have the option of utilizing accounts insured by the National Credit Union Administration (NCUA). Similar to the FDIC, the NCUA provides insurance coverage of up to $250,000 per member, per credit union.

By diversifying their holdings across both FDIC-insured banks and NCUA-insured credit unions, millionaires can further expand the umbrella of protection over their wealth.

The Excess Deposit Solution: IntraFi Network Deposits

While the $250,000 limit may seem substantial for most individuals, millionaires often have deposits that exceed this amount. Enter the IntraFi Network Deposits, formerly known as the Certificate of Deposit Account Registry Service (CDARS). This program allows participating financial institutions to split large deposits and distribute them across multiple FDIC-insured banks, effectively increasing the insurance coverage for depositors.

Through the IntraFi Network Deposits, millionaires can enjoy the peace of mind that comes with knowing their substantial deposits are fully insured, without the need to open accounts at numerous banks manually.

The Investment Alternative: Cash Management Accounts

Millionaires understand the importance of diversification, and while insured bank accounts provide a solid foundation, they often seek additional investment opportunities. Cash management accounts offered by brokerages can be an attractive option, as they typically feature a sweep feature that automatically moves excess funds into FDIC-insured deposit accounts at member banks.

By utilizing cash management accounts, millionaires can benefit from the potential growth of their investments while simultaneously enjoying the protection of FDIC insurance for their cash holdings.

Low-Risk Investments: Treasuries and Government Bonds

While not technically an insurance mechanism, millionaires also allocate a portion of their wealth to low-risk investments, such as Treasury securities and government bonds. These investments are considered among the safest due to their backing by the U.S. government, providing a layer of protection against market volatility and economic downturns.

By diversifying their portfolios with a mix of insured bank accounts and low-risk investments, millionaires can strike a balance between preserving their wealth and generating returns.

The Millionaire’s Mindset: Prudence and Diversification

At the core of millionaires’ wealth management strategies lies a fundamental principle: prudence. While they may have achieved significant financial success, millionaires understand the importance of safeguarding their wealth against unforeseen circumstances.

By diversifying their holdings across various insured accounts, low-risk investments, and potentially alternative assets, millionaires can mitigate the risks associated with concentrating their wealth in a single institution or investment vehicle.

Seeking Professional Guidance

Managing substantial wealth can be a complex endeavor, and many millionaires recognize the value of seeking professional guidance from financial advisors and wealth managers. These experts can provide personalized advice, tailored to the unique needs and goals of each individual, ensuring that their wealth is protected and strategically allocated for long-term growth and preservation.


In the world of wealth management, insuring one’s money is not a luxury but a necessity. Millionaires understand this truth and employ a multifaceted approach to safeguarding their fortunes. From FDIC-insured accounts to low-risk investments and professional guidance, they leave no stone unturned in their pursuit of financial security.

While the specific strategies may vary, the underlying principles remain constant: diversification, prudence, and a relentless commitment to protecting their hard-earned wealth. By following in the footsteps of millionaires, we too can embrace these principles and pave the way towards a more secure financial future.

Where do Millionaires Bank their Money


How do rich people keep their money insured?

Millionaires don’t worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.

Do millionaires keep their money in the bank?

Millionaires also bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth. There is no standing in line at the teller’s window. Studies indicate that millionaires may have, on average, as much as 25% of their money in cash.

What happens if you have more than 250k in the bank?

The FDIC insures up to $250,000 per account holder, insured bank and ownership category in the event of bank failure. If you have more than $250,000 in the bank, or you’re approaching that amount, you may want to structure your accounts to make sure your funds are covered.

How rich people protect their wealth?

The wealthy often use trusts to safeguard their money and minimize their tax burden. While trusts can be created by anyone, many people in the middle class are unaware of the advantages they offer. As a result, they miss out on financial benefits and asset protection.

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