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

These days, I’ve been helping my mother-in-law keep her savings in another bank—suddenly I thought of this question.

An older person keeping money in a bank in the first place is, of course, about peace of mind.

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

The central government’s introduction of a deposit insurance system also surely has a purpose.

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

So how risky are those listed large banks—from the “Big Four” state-owned banks, to joint-stock banks, then to city commercial banks, and rural credit cooperatives? If you have a large amount of funds in the future, is it necessary to spread it across several banks just because of the 500,000 limit? The benefit would be safety, but the downside is that it’s too much trouble.

Maybe thinking about this right now is a bit of unnecessary worry.

Does Jisilu have anyone—either themselves or their parents—who has deposited more than 500,000 and split it across banks? Thank you.