Re: FDIC Insured.....
It depends on how likely you think it is for your bank to go under and whether you think that risk is worth 3% interest. There was a banking crisis not too long ago during th S&L Loan crisis, so there is a real possibility of it happening.
There is also the possibility, that in an extreme enough banking crisis, that the FDIC will not be able to make good on their insurance.
These are the risks you take for your 3% interest. I personally don't think it is worth keeping $200,000 in the bank, particularly when there are so many more attractive investments available. I would keep enough liquid to handle my day-to-day expenses, and put the rest in safer or more aggressive investments.
As was mentioned in another thread, T-Bills have a pretty much 0% risk of default.
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