is it safe to put 200 million dollars in a bank to just earn interest?

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  • Anonymous
    11 months ago
    Favourite answer

    What do you mean by "safe"?

    Some people would say it's unsafe because it's not insured.

    I'd say it's unsafe because parking 200 million in an investment that inflation will erode is silly.

  • 11 months ago

    If you're looking for safety, you'd be better off buying US Treasuries with that money.

  • 11 months ago

    No, it is not safe. Banks do not insure up to 200 Million. And Hey, Marduk-I thought what you said was comical:

    Quote: "$500,000 a year which is not shabby if you live frugally."

    How many people live frugally on $500,000 a year?

  • 11 months ago

    No, it is not safe to put 200 million into one bank. If you want to put 200 million into banks, then put about $200,000 each in 1000 different banks.

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  • Stoo
    Lv 7
    11 months ago

    If you had $200M you'd have investment advisors who can answer this question.

  • Marduk
    Lv 7
    11 months ago

    Safe, no, stupid, yep. Let me 'splain loosely. Your savings account is insured up to $250,000. You have 400 times that, so you are F****ed if the bank fails. So you could put it in 400 different banks, but I doubt there are 400 different banks. Even so, what a mess. You will get .25% on the 200 mill though which is $500,000 a year which is not shabby if you live frugally. Trying to keep track of 400 accounts can become quite chore though and come tax time, oh boy. Being fiscally conservative, I would chose 5 of the highest rated funds, one being a hedge fund. I would put $38 mill in to each one. I would put $5 mill in 5 banks in different types of accounts. I would put $2.5 mill into Savings bonds and $2.5 mill into T-Bills. They don't earn much and they may go negative, but still, you have an safe investment. To me, don't get greedy is the thing. The issue is to spread it around a little so when companies like Lehman and people like Bernie Madoff disappear with your money, you still have something to live on.

  • 11 months ago

    That is how Paypal earns their money, by putting the transactions in the Overnight Funds accounts.

  • Erik
    Lv 7
    11 months ago

    don't worry about problems you don't have

  • Anonymous
    11 months ago

    Considering that your account balance is only insured to $100,000 here in the US?

  • Anonymous
    11 months ago

    What could go wrong?

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