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Maximum Amount Allowed in an Account

Is there a maximum amount of money allowed in a regular deposit account? For example, if you win $20 million, is it possible to put it all in one account?

Untitled

There is no maximum amount that your bank will restrict you to, but putting "all your eggs in one basket" may not be a good idea. You may do this for use as a staging area, but you would want to move the funds for a number of reasons.

First, you would not have deposit insurance on all your funds. Moving money to different accounts with different ownership can help you maximize insurance coverage. If you will have no other owners, this becomes more restrictive but you can still work with your bank to put money in different types of accounts to maximize coverage. Even at that you would need several banks if you want all or most to be insured.

Second, you want your money to work for you. This means it should be invested. While some bank accounts do pay investable rates of interest, because it is generally meant to be short term you won't maximize your monies earning potentials so having your winnings go into one account may be a good idea, but more so just for the short term.

Published on BankingQuestions.com 3/09/07