However, there is some nuance.
Business accounts are insured separately from personal accounts. That means one depositor can be insured both as an individual and as a business. In Ms. Wirth’s case, for example, she would be covered for up to $250,000 for her Latched Mama accounts and up to $250,000 for her personal accounts.
Additionally, if you have a joint checking account with a spouse, each person is insured, for a total of $500,000. For example, if you keep $300,000 in the joint account plus $100,000 each in a savings account, your entire $500,000 will be insured.
However, having multiple signers on a business account does not increase the insurance coverage. The best thing to do is talk to your banker, Ms. Rainey said.
Should I open accounts at other banks?
Diversifying your holdings is always a good idea. The F.D.I.C. insures each depositor at each institution, so spreading your wealth offers more coverage. Having a second banking relationship also makes it easier to quickly wire funds to safety if you worry that your bank may be unstable.
“Always have a backup strategy; hope is not a strategy,” said Jeni Mayorskaya, founder of Stork Club, which creates reproductive-health benefits packages that companies can offer their employees.
She has raised more than $30 million from investors and was encouraged to keep her funds at Silicon Valley Bank. But when she started hearing whispers that the bank might fail, she opened accounts elsewhere.
“I grew up in Russia in the 1990s, and what we observed was a financial collapse every five years,” she said. “We learned you always have a diversification strategy.”
