Recent headlines on the banking crisis have most likely brought up questions on the safety of your money and assets. This blog will hopefully clarify those concerns.
Charles Schwab, like all federally registered regulated banks, has insurances in place to offer additional protection to their customers. In summary, there is SIPC insurance which covers up to $500,000 in cash and securities per account holder - $250,000 limit for cash. SIPC covers account holders if the firm fails and cannot return assets and covers unauthorized trading or theft of their securities. Additionally, Schwab has FDIC insurance which traditionally covers up to $250,000 per account holder in deposit accounts like bank sweep products and CD’s should a bank fail. In the case of Silicon Valley Bank, FDIC made exceptions and guaranteed ALL deposits – so the limit of $250,000 is up for interpretation. Lastly, Schwab has in place “excess SIPC” insurance of $600M for securities and cash if the first two programs are exhausted.
Here is a link that explains the account protections that Schwab has in place: Is my money safe - Account Protection | Charles Schwab..