While preferences differ, many millionaires choose banks that offer private banking services tailored to high-net-worth individuals. Institutions like J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank offer perks like personal bankers, waived fees, and wealth management services.
Private banking may include wealth planning services, waived fees, dedicated bankers, and additional perks. 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?
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.
It's important to have a savings account with a bank that's insured by the Federal Deposit Insurance Corp. (FDIC). This way, you won't lose your funds should the bank fail. The FDIC insures up to $250,000 per depositor, per FDIC-insured bank, per ownership category.
A business owner might need several millions on hand for a project, so they need the funds to stay liquid and can't invest it. Your first thought might be to put the money in a bank. However, FDIC limits only protect up to $250,000 in cash, and $500,000 for joint accounts. You don't want to risk that money.
The key to making the most of the money is to put it somewhere to earn interest or to invest it – if you're comfortable with the risks associated with this. The main questions you should be thinking about are when you might need the money, how long you can put it away for, and what level of risk you are happy with.”
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.
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.
Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.
So, let's break it down – how many Americans have a net worth of $1 million or more? According to the 2022 Survey of Consumer Finances by the Federal Reserve, only about 12% of U.S. households have a net worth over $1 million. This means that the vast majority – 88% – are nowhere near that level.
Deposit accounts—like savings accounts, CDs, MMAs, and checking accounts—are a safe place to keep money because consumer deposits are insured for up to $250,000, either by the FDIC or NCUA.
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.
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 $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.
Local banks or credit unions
Visit your local branch and talk to a teller to deposit your cash. Different banks might have varying policies on the maximum amount of cash you can deposit at once, so be sure to check with your local bank beforehand.
During times of uncertainty, you may be wondering where to safeguard your money. Is it better to stash it under your mattress than to keep it in your bank account? The short answer: No. Especially in turbulent times, a federally insured bank is the safest place for your money.
Demand Deposit Account (DDA) & Money Market Deposit Account (MMDA) DDA/MMDA allows you to place funds into demand deposit and/or money market deposit accounts. You can deposit up to $100 million for each account type.
Another reason to cap the cash in your checking account is to protect it. The Federal Deposit Insurance Corporation (FDIC) insures funds in deposit accounts up to $250,000 per depositor, per FDIC-insured bank, per ownership category.
CDs, high-yield savings accounts, and money market funds are the best places to keep your cash when it comes to interest rates. And Treasury bills still offer decent yields at the lowest risk. Learn how they compare in terms of yield, liquidity, and guarantees.