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Comment by tersers | Hacker News Reader

This happens in Canada for credit unions and some online banks.

Fun fact, there exists a bug with EQ Bank where a deleted savings account still counts towards the maximum of 5 savings accounts. The customer service agent indicated this was a known bug and had been for some time! I'm planning to leave within the next year.

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Why do you need 5 savings accounts?

The US only insured accounts up to 250K so its common to split up accounts for that reason.

what a great problem to have

It's only $250K per account category per bank. So 5 savings accounts would only get $250K in coverage in total.

That isn't how that works.

Its $250k per account type, per institution. So 5 savings accounts at the same institution doesn't increase your insurance over 1.

Some banks will "sweep" the excess funds into partner banks (which would increase protection).

Gotcha that makes sense.

Ouch @ inflation

Were the Canadian banks using US insurance?

Not sure exactly what is meant, but if this includes Certificates of Deposit, CD laddering was a frequent thing when interest rates were high enough to be worthwhile, where you'd want long-term CDs for the highest interest rates, but wan t to get the point of having some fraction of your CDs expire every month so you have liquidity, so you might have 60 5-yr CDs for instance, and somewhat less while you're working your way up to that

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