I echo about ratings. There is little faith in these anymore, and yes Wells Fargo has been under the spotlight, although not so much as WaMu et al. I did the rounds regarding FDIC, and the answers you get depends not just on which bank you ask, but amazingly some branches have their own versions. Stick with the bigger, main branches and ask senior staff. The general rule with FDIC is that the $100k is per account holder, so if it’s a joint account then the limit will be $200. You can also add a “beneficiary” to the account which has to be a close relative. This behaves like a trust, and is only payable on death, but has the effect of doubling up the FDIC cover as well. Not all banks do this. Living Trusts, retirement plans, are also covered, and I believe the latter has a $250k ceiling.
There is a scheme where dozens of smaller banks have clubbed together, to spread the risk for large cash holdings. The advantage is that you hold just one account with the custodian, and they do all the work for you. The name of the scheme alludes me at this time. In principle, it looks OK, but it is not a Federally backed or regulated scheme, as far as I am aware, and so there may be some unquantifiable risks. However, all banks in the scheme have FDIC insurance.
On a final note, I have read posts here that some people have met with resistance when trying to move funds. This is your money, banks got us into this mess, and I would deal sharply with any bank personnel that gives you a hard time. I also wouldn’t preclude moving funds around as often as you like until you have found your peace of mind.
