In summary, the conception that billionaires have billion-dollar bank accounts is nothing more than misguided. In reality, the majority of their wealth is held in a diverse range of assets, with only a small fraction in cold, hard cash.
According to the U.S. Trust Survey of Affluent Americans, high-net-worth investors with over $3 million in investable assets hold an average of 15% of their portfolios in cash and cash equivalents. This allocation allows for ample liquidity to seize investment opportunities or cover large expenses as they arise.
Cash equivalents are financial instruments that are almost as liquid as cash and are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills.
Millionaires and billionaires keep their money in different financial and real assets, including stocks, mutual funds, and real estate.
This is what the memes get exactly wrong: billionaires don't become and stay rich by hoarding; that's the last thing they want to do with their money. There are related myths and assumptions, such as that the only way to accumulate a net worth of so much money is through evil, if not outright unethical, means.
Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.
The $250,000 limit applies per depositor, per FDIC-insured bank and per ownership category. This means that by opening different accounts, you can end up with much more than just $250,000 in insured funds. Insurance limits apply to the entire depository institution – not individual branches.
J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires. Read more: What is private banking, and how does it work?
Musk's best investments include PayPal, SpaceX, DeepMind Technologies, Tesla, and The Boring Company. Elon Musk is an engineer, industrial designer, and technology entrepreneur known for disrupting multiple industries. Musk holds the distinction of being the world's richest person as of January 2025.
Millionaires are more likely to have a credit card from nearly every major issuer than less wealthy Americans, with Capital One being the only exception. This is likely due to rich Americans simply having more credit cards than the average American.
Middle class is defined as income that is two-thirds to double the national median income, or $47,189 and $141,568. By that definition, $100,000 is considered middle class. Keep in mind that those figures are for the nation. Each state has a different range of numbers to be considered middle class.
It has become especially popular because it can potentially be a gateway to millionaire status. The famed wealthy entrepreneur Andrew Carnegie famously said more than a century ago, “Ninety percent of all millionaires become so through owning real estate.
Wealthy family borrows against its assets' growing value and uses the newly available cash to live off or invest in other assets, like rental properties. The family does NOT owe taxes on its asset-leveraged loans because the government doesn't tax borrowed money.
Several popular banks, like JP Morgan, Bank of America, Wells Fargo, Citi Bank, and Goldman Sachs, offer private banking options that provide millionaires with wealth management advice and services.
Generally, there is no limit on deposits. However, there are limitations on the amount of funds the Federal Deposit Insurance Corporation (FDIC) will insure. Please refer to the Understanding Deposit Insurance section of the FDIC's website for more information on FDIC deposit insurance.
X.com developed and operated a financial services website with banking services provided by First Western National Bank, an FDIC-insured bank in La Jara, Colorado. The company was initially funded by Elon Musk and Greg Kouri, who went on to fund Musk's later ventures: Tesla and SpaceX.
You can deposit up to $100 million for each account type. With this option, you may receive expanded insurance protection and still have the flexibility to access your funds when you need them.
Millionaires Can Be Erratic With Their Checking Accounts
“Millionaires' checking accounts are all over the place,” Thompson said. “Some clients will only keep enough to pay for immediate expenses (e.g., $10,000) and others will have $150,000 in checking on any given day.”
Although it may seem sketchy, it is perfectly legal to travel with any amount of cash — even very large amounts. You could cram $1 million dollars into your purse if you wanted because there is no cash limit for travel in the U.S.A., as far as domestic flights are concerned.
Generally speaking, like other deposits at a bank, the FDIC insures your CDs for up to $250,000. 1 Deposits at federally insured credit unions are insured for up to $250,000 by the National Credit Union Administration.
Certificates of deposit issued by banks and credit unions are also insured for up to $250,000, guaranteeing your deposit and any interest returns you earn. Money market accounts are worth considering as well. They're FDIC-insured and combine features of checking and savings accounts.
More rich people are using 'secret' trusts and LLCs to hide money from their spouses. Secret trusts and LLCs are increasingly common ways wealthy people are shielding assets in divorce. Trusts and offshore accounts controlled by a shadowy company.
The FDIC insures up to $250,000 per account holder, insured bank and ownership category in the event of bank failure. If you have more than $250,000 in the bank, or you're approaching that amount, you may want to structure your accounts to make sure your funds are covered.