No lie, I had an irrational fear that authorities would be summoned the first time I tried to deposit a large check (from consulting). I asked for a private conference with a banker so that I could explain the circumstances. Whereupon we had a very classic conversation:https://twitter.com/cperciva/status/1036423661673009153 …
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"What's a demand deposit?" I'm glad you asked, Internets. One of the fundamental sources of value in banking is maturity transformation: "borrow short and lend long." The loans of a bank generally have long time scales (e.g. 30 year mortgage) but deposits have much shorter ones.
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Some deposits are fixed-term, like CDs. The money might be (theoretically, for the case of CDs) locked up for 6 months or a year. Others are "demand" deposits. You get the money ~immediately "on demand", at your own option, w/o paying a penalty.
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+ FDIC limit = $250k so you're uninsured for most of that amount anyway
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So where's the money supposed to go if you have more than that?
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Wow i see.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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