Max spreads your cash out across multiple banks to help keep you below the FDIC insurance limit at each bank.
By default, Max assumes that at the completion of each optimization, you desire to have no more than $249,500 in each online savings account (this leaves a $500 cushion below the current FDIC insurance limit of $250,000, so that interest that accrues through the date of your next optimization can also be protected). If you indicate that you have joint accounts, Max targets keeping your balances below $500,000 per account.
You may change this targeted maximum balance to be higher or lower than the pre-set default by selecting the “Custom” FDIC Coverage option on your Max Dashboard, and then clicking on the gear icon next to each savings account to adjust the settings for each bank. Then click “Save Your Settings” to confirm the change.
Note: FDIC insurance is provided by your banks, not by Max. If you increase your per-account limits above the FDIC insurance limit, your funds may be at risk in the event of a bank failure.