Is it necessary to split your deposits into multiple banks if you have more than 500,000 yuan in funds?

In the past few days, I’ve helped my mother-in-law move her savings to different banks, and it suddenly made me think about this issue.

The reason the older generation keeps money in banks in the first place is for peace of mind.

Even in the future, when I’m older, I’d also consider moving some of my funds from the stock market into bank deposits—the older I get, the higher the share of deposits.

The central government’s introduction of a deposit insurance system clearly also has a specific intention.

Maybe there really is risk with rural township and smaller banks—apparently there was an incident a few years ago.

So are those listed banks—ranging from the big four, to joint-stock banks, then city commercial banks, and rural commercial banks—high-risk? In the future, if you have a large amount of money, is it necessary to split it across several banks just because of fifty thousand, so that you can deposit in a few places? The benefits are certainly safety, but the downside is that it’s too much trouble.

Maybe it’s a bit overcautious worry to think about this right now.

Does anyone on Jisilu have yourself or your parents with deposits that are relatively high? Do you split it across banks if it exceeds fifty thousand? Thank you.