Here's a radical idea, sure to spawn controversy. For years and years, we have been led to believe that FDIC/NCUA insurance was vital. Accordingly, we were advised never to exceed FDIC/NCUA limits, especially on IRA accounts, where the $250,000 limit was sacrosanct.
Problem being, some financial institutions offer very tasty interest rates. Example: Patelco just came out with 2.75% on its 5-year. Is it irrational to plop $270,000 in an IRA CD with Patelco? While other financial institutions might offer the same or similar rates, is it folly to disregard FDIC/NCUA limits?
For example, for the past seven years, I have had $350,000 in a CD with USAA. Was I concerned? No. USAA has been around longer than I.
OK, weigh in. Do FDIC/NCUA coverages really matter all that much today in your investing decisions, or is it all about rates and terms?