Except bank have deposit protection scheme, so whatever happens you're covered thanks to the fact that they proved to respect a framework of regulations in order to make deposits covered
You are correct. I'd like to add, though--this is a soft cap. It's $250,000 per bank, per ownership category. You are insured up to $250,000 for each of the ownership categories at a single bank.
These are the ownership categories:
-Single accounts (owned by one person).
-Joint accounts (owned by more than one person).
-Certain retirement accounts, including IRAs.
-Revocable trust accounts.
-Irrevocable trust accounts.
-Corporation, partnership and unincorporated association accounts.
-Employee benefit plan accounts.
-Government accounts.
If you were to open a single account at Wells Fargo with 250k in it, you can also open a joint account with 250k and have it insured. Then, you can go to Bank of America and do that same thing.
Also, I'm not sure if America has ever enforced the cap, but it's safer to keep it under 250k per ownership category.
