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You are right. That's fair and an important distinction.

FDIC insurance is, standard, $250,000 per depositor, per insured bank, for each account ownership category. [1]

Brokerage balances are SIPC insured against brokerage defaults, but not a money market fund imploding. [2]

[1] https://www.fdic.gov/resources/deposit-insurance/brochures/d...

[2] https://www.sipc.org/for-investors/what-sipc-protects



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