Originally Posted by
ma91pmh
I have not read their financial statements so can't pass judgement on their credit-worthiness. however there was another bank around a year ago that was handing out aa miles and that one got seized by the fdic. texas capital bank (the actual bank you face, bankdirect is just a brand name) is not a household name, and i doubt it would even make page 2 of the wsj if it went under given how many other banks have gone under.
250k gets you 25k miles per month. i doubt whether i would personally go over that limit unless i could seriously afford to lose the money. diversification is the most basic method of asset protection.
If you're married, it's very easy to double-down here.
I think the FDIC has records of what percentage of money people have lost, on average, when they have more than the limits in insured accounts, and the losses are minute. The FDIC still works to recover all money, even beyond insured limits - there's just no guarantee.
But there is always risk.