Do retirement accounts have any protections the way the FDIC does for bank accounts?

[progree]

11. Where wealthy investors are putting their cash after SVB collapse, CNBC

https://www.cnbc.com/2023/03/16/where-wealthy-investors-are-putting-their-cash-after-svb-collapse.html

Wealthy investors and family offices are moving more of their money out of bank cash balances and into Treasurys, money markets and other short-term instruments, according to wealth advisors.

High net worth investors typically keep millions of dollars or even tens of millions in cash in their bank accounts to cover bills and unexpected expenses. Their balances are often way above the $250,000 FDIC insured limit. Following the collapse of Silicon Valley Bank and potential cracks in the network of regional banks, wealth advisers say many clients are now asking fundamental questions about how and where to keep their cash.

Zeuner advises investors concerned about their cash deposits to ask their banks or advisors two basic questions: How is my cash being deployed, and is it on the bank balance sheet? If the cash is invested in Treasurys and other financial instruments, it’s likely not on the bank balance sheet and therefore not at risk in the event of a bank run.

Some big investors have been moving away from banks entirely — shifting their cash to custodial accounts at brokerage firms and firms like Fidelity and Pershing. They say custodial accounts provide most of the benefits of a bank account — allowing wire transfers, check writing and bill pay — but without the same risks and with more portability.

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