Suppose you win a $5 million prize. Once you go to claim your prize, where is that money kept? Does it go into a special type of bank account? The reason I ask is this: Aren’t bank accounts insured by the FDIC only up to the amount of $100,000?

 

Comments

  • I don’t think they get the money at once…Like some each year(but it’s still a lot for each year)

  • That is where mine would go until I spent it and I am sure you could get multiple bank accounts.

  • Most state lotteries will deposit the winnings into a bank account if you choose the a single payout (which is a reduced sum from the advertised total). If you choose a term payout, the state keeps the money and pays you a certain amount annually.
    You are correct regarding the FDIC – they insure each “depositor” at a bank (not each account) up to $100k in case of a default by the bank.

  • It goes wherever you put it.

  • People who have more than 100,000 sitting around don’t keep it in banks. They invest in stocks, real estate, vacation houses, boats, companies, etc. If you win, you get to decide. Or there are lots of professional financial advisers.

  • If you take the cash, it’s yours and you can put it anywhere you like. It’s only insured up to $100,000 per account, but that doesn’t matter much if you use good dependable banks.

  • FDIC insurance only comes to the rescue if a bank goes under. This is an unlikely even for most major banks and can really be the least of your worries.

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